Many people believe that the federal government in Ottawa has long opposed Alberta’s oil industry and tried to block its growth. This belief is often used by politicians to stir anger and push separatist ideas. However, looking at the facts shows a different story. The federal government has supported Alberta’s oilsands many times over the years.
The idea that Ottawa is always against Alberta oil is based on some historical events like the National Energy Program in 1980 and pipeline project cancellations. But this view leaves out key facts. For example, Ottawa supported important pipeline projects like Keystone XL and the Trans Mountain expansion. The government even bought the Trans Mountain pipeline in 2018 to make sure it would be built. Former Alberta premier Jason Kenney thanked Prime Minister Justin Trudeau for backing Keystone XL. These facts do not fit the idea that Ottawa wants to harm Alberta’s oil industry.
Since the 1970s, the federal government has helped the oilsands sector grow. Ottawa invested in the Syncrude oilsands project in 1975 when it took a 15% stake. While the National Energy Program was tough on conventional oil producers, it gave tax benefits to oilsands companies and guaranteed them higher prices for their oil. This helped create the foundation for the oilsands boom that started in the mid-1990s. Ottawa also introduced tax breaks in 1996 to promote oilsands growth, even while trying to reduce government deficits.
The federal government has treated the oilsands lightly in climate change policies. The 2002 federal Climate Change Plan set rules similar to those wanted by the Canadian Association of Petroleum Producers. Leading oilsands producers said the plan would add only a small cost to their oil production. Alberta’s government set a greenhouse gas emissions cap in 2015 that was much higher than actual emissions at the time. Ottawa accepted this generous cap and made it part of its climate policies. New oilsands projects were exempted from strict federal assessments until the cap is reached. As of 2023, oilsands emissions remained below the federal limit.
Alberta’s current premier claims that Ottawa’s proposed national emissions cap will sharply cut oil production. She cites a parliamentary budget officer report to support this. However, the report actually projects oilsands production will grow and remain above current levels. The new cap would allow emissions higher than today’s amounts. This shows Ottawa continues to support Alberta’s oilsands despite political claims.
Myths about Ottawa’s hostility toward Alberta’s oil are powerful but misleading. They feed anger and division without reflecting reality. It is important for Canadians to understand the facts and avoid being misled by false stories. Ottawa’s record shows many actions that have helped Alberta’s oil industry grow over decades. Knowing the truth helps build unity and better decisions for Canada’s future.
