Energy sector key to Canada’s success

By Chantelle de Jonge Chestermere-Strathmore MLA

Canada’s energy sector plays a significant role in the nation’s economy, contributing to GDP, employment, and exports. In 2022, the oil and natural gas industry accounted for $71.4 billion of Canada’s overall GDP, which represents 3.2 per cent of the total. Energy exports make up 20 to 25 per cent of Canada’s total international exports and support nearly 600,000 jobs across the country. These industries also generate critical revenue through federal and provincial taxes and royalties. 

Overall, the energy sector constitutes approximately 5.5 per cent of all economic activity in Canada, with Alberta’s oil sands alone contributing about three per cent of the national economic activity, totaling around $54 billion per year.

Given the uncertainties surrounding international trade, Ottawa should look to our energy sector as a source of economic opportunity. However, the federal government has continued pushing its 2030 Emissions Reduction Plan which aims to restrict the oil and gas sector, kneecapping one of Canada’s most critical industries at the worst possible time.

The federal Emissions Reduction Plan hurts Canada’s economy and kills jobs. The PBO projects that the required reduction in production would reduce nominal GDP by $20.5 billion in 2032. It will reduce economy-wide employment in Canada by 40,300 jobs and full-time equivalents by 54,400 in 2032.

Alberta will not stand for this extreme ideological cap or the unjustified attack on our constitutional jurisdiction, economy, and the prosperity that it represents. Alberta’s government will take this fight to the courts if these regulations become law. 

Recently, China imposed retaliatory tariffs on a catalog of Canadian exports, including canola – a vital cash crop that many Albertan farmers rely on to make ends meet. This latest trade dispute demonstrates the risks of Canada’s reliance on unpredictable global markets and the need for Ottawa to prioritize economic stability for all regions, including Alberta.

Now the federal government continues to flaunt their Emissions Reduction Plan in blatant disregard for the future of Canadians. We are prepared to go the distance to fight these unconstitutional, self-sabotaging policies. By protecting our oil industry from federal overreach, we are taking a “Team Canada Approach.” We are making sure that the lifeblood of Canada’s economy operates effectively for Albertans, but also for the greater good of Canada during these uncertain times. 

As Alberta faces uncertain economic times and tariff threats, our government is introducing a new eight per cent personal tax bracket on income up to $60,000, meaning individual taxpayers will save up to $750 in 2025 while two-income families will see savings of up to $1,500. Overall, this personal income tax cut is expected to save Albertans $1.2 billion in 2025, with savings rising to $1.4 billion in 2028, helping to strengthen our economy and ensuring that you can keep more of your hard-earned dollars. 

As always, please feel free to reach out to my office with your feedback and questions (Chestermere.Strathmore@assembly.ab.ca).

(Chantelle de Jonge is the MLA for Chestermere-Strathmore and the Parliamentary Secretary for Affordability and Utilities)