"It would be absolutely self-destructive, and this with all the uncertainties facing that sector, from tariffs to export taxes, to even more extreme actions by a Liberal government — and Mark Carney is probably going to be the prime minister next week."These are the words of Calgary-based energy expert, commentator and author Dennis McConaghy when asked by the Western Standard if Alberta should attempt to extract more money from the oil and gas sector to shore-up finances."For the Alberta government to even contemplate squeezing, through considering changes to royalties — that would be profoundly stupid."Some advocates, including economists, say the current sliding scales — for example 5%-40% for conventional oil/gas, 1%-9% pre-payout and 25%-40% post-payout for oil sands — are too generous, especially when prices climb. They propose raising maximum rates—say, to 50% or more—or hiking the base pre-payout rate above 1%, citing Norway’s 67% oil tax as a benchmark for capturing more resource revenue.The push reflects frustration over Alberta’s boom-bust cycles and social spending gaps, enhanced by the economic uncertainty of 2025.McConaghy said there are two fundamental concerns for the province — tariffs, how they will be applied."It is especially disconcerting — if they do get applied, and as I said before, a Liberal government considers export taxes or even supply disruptions, that would be catastrophic," he said."But if we assume that (tariffs) were to persist for a while, there are no good choices for the Alberta government, in the sense that it would be, in my judgment, ridiculous to try to be more punitive to this industry."U.S. tariffs on Canadian goods and energy are set to hit Tuesday — 25% on goods and 10% on oil and gas.McConaghy added, "So in the short run, you're going to do deficit financing, because that is the least bad of unpleasant alternatives. And that's what the Alberta government should be about, is averting the disaster of these tariffs, and furthermore, inserting itself into this federal election so that we do not have a federal government that is entirely antithetical to the interests of Alberta."Lisa Baiton, president and CEO of the Canadian Association of Petroleum Producers said of impending tariffs, "Nobody wins with the introduction of tariffs on Canadian energy."She added, "With the complexity of North American and global oil and natural markets, it is difficult to predict how the application of a 10% tariff on Canadian oil and gas will impact supply, demand and trade patterns."
