Barriers to domestic oil and gas trade frustrate Smith

Alberta Premier Danielle Smith is frustrated over a lack of domestic oil and gas trade — which has created reliance on the U.S. as a primary buyer.

"One of the points that I've made publicly to my counterparts, is the reason why Alberta sells so much oil and gas to the United States — is they wouldn't let us sell it to them," said Smith during her weekend radio interview.

Context for Smith's comments is President Donald Trump's threat to impose a 25% tariff on Canadian goods on February 1. The move could damage Canada's economy and affect trade in oil and gas.

Some fear Ottawa may try to use Alberta oil and gas as a bargaining chip in a trade war with Trump. Smith says oil and gas are owned by the province and that she won't tolerate attempts to block exports to the U.S.

"They wouldn't let us build Northern Gateway (pipeline)," said Smith. "They wouldn't let us sell it through Energy East to the east coast, so that they could be less reliant on imports from America, and maybe this is a time for us to recalibrate."

Smith questioned why provinces have stronger trade relationships with their American counterparts than with each other.

"And so, we're beginning the conversation," she said. "You saw (Premier) Tim Houston in Nova Scotia saying 're-permit Energy East tomorrow.' You're having similar conversations happening in B.C. — maybe we should be talking about Northern Gateway."

Smith added, "And we've had a conversation initiated about internal trade barriers. How do we break those down so we can move more trade between the provinces?"

"So, I'm hoping that we're on the cusp of changing the relationship with our provincial counterparts, so that people can have confidence."