There is some logic to an alliance between Alberta and the U.S., but only if it’s a truly defensive one. On Friday, Jason Kenney, seen here on March 20, 2020, suggested that a co-ordinated cut in production could be in order, an idea that’s increasingly popular down in Texas.Max Fawcett is a freelance writer and a former editor of Alberta Oil magazine and Vancouver magazine
It’s easy to see why the prospect of Alberta and Texas squaring off against Saudi Arabia and Russia would appeal to Mr. Kenney. He has built his political reputation in the province on his willingness to fight, whether it’s with his partisan political opponents or groups such as teachers, doctors and public servants.
Russia and Saudi Arabia are major players in the global natural gas and oil markets – and both would almost certainly react badly to having their exports hit with tariffs or outright bans. In its IPO filing, state oil company Saudi Aramco boasted lifting costs of US$2.80 per barrel, a small fraction of what it costs in Canada or the U.S., while Russia’s are now lower still thanks to the falling ruble.
More to the point, the blame for this price war belongs as much to North America as it does to the Middle East and Russia. For more than three years, OPEC countries and Russia have been cutting their production to support prices, only to watch as Canadian and U.S. companies rushed to fill the gap that created. Between February of 2017 and 2020, oil production in the U.S. increased almost 50 per cent.
GlobeDebate Maybe Kenney wants to be the next Trump. If that is the case strap in it is going to be a wild ride.
GlobeDebate It's worthless. Except to refiners. Concentrate on getting the rest of Canada to use Alberta resources. Keep the money in Canada.
GlobeDebate I wonder how many of those healthcare workers and first responders who are under-equipped and undeterred risking their lives everyday in the trenches selflessly will try an absurd power grab to become the King of Canada for 2 years? I guess only time will tell. thisissobad