Alberta Premier Danielle Smith has presented a bold ultimatum to the federal government, demanding immediate action on nine pivotal issues impacting the province’s oil and gas industries. Following a meeting with Prime Minister Mark Carney, Smith is pushing for significant policy reversals within six months of the upcoming federal election, or she will consult Albertans through a potential referendum.
The Premier characterized these demands as part of a “historic opportunity” for Alberta to reshape its relationship with Ottawa, particularly as policies under previous Prime Minister Justin Trudeau have been perceived as detrimental to Alberta's energy sector. In recent comments, Smith articulated her broader concerns, saying, “I believe in direct democracy; I always feel like big important decisions need to be put to a referendum of all Albertans.” This implies that if her demands are inadequately addressed, the public may determine the province's next course of action.
On March 21, 2025, after her meeting with Carney, Smith unequivocally stated, “If Alberta is brushed off on these demands, I will ask Albertans what they want to do,” indicating that the next steps would depend on public sentiment. Central to her list of demands is the insistence on removing an emissions cap on the oil and gas industry, which has been met with contradictory statements from the Prime Minister’s office. While Carney initially indicated that an emissions cap would not be imposed, he later affirmed that it remains a priority for the Liberal government.
Smith's demands also include scrapping the net-zero power regulations, abolishing the Canada-wide ban on single-use plastics, and ensuring the establishment of oil and gas corridors that would facilitate transport in multiple directions across the country. “None of what I put on here is unreasonable,” Smith stated, underscoring her belief that these requests are fair, especially given her perception of Carney's administration as a potential shift from Trudeau’s policies.
The political landscape is charged, especially with the looming federal election expected to be called on March 23. In this climate, Smith's call for clarity from Carney takes on an even greater urgency. She noted, “Albertans and Canadians need to know what the promise is before an election,” reflecting her concerns about mixed messages from the federal government regarding support for Alberta’s economy. This tension is palpable, considering Carney’s recent contradictory remarks about the emissions cap, with Environment Minister Terry Duguid stating that the cap would be implemented despite earlier assurances to the contrary.
In the context of managing Alberta's energy resources, the Premier's stance resonates with Conservative Leader Pierre Poilievre, who remarked that Smith's demands are “very reasonable.” He emphasized the importance of understanding Carney's position to discern whether real change is underway or if it’s merely political posturing.
The conversation surrounding Alberta's role in the national context has been exacerbated by Smith's assertion that Alberta should no longer subsidize larger provinces capable of self-funding, implying a call for greater fiscal autonomy. Moreover, she indicated that her administration would not accept a made-in-Ottawa tax on oil heading for the U.S. or a reduction of oil shipments to its southern neighbor. This conveys a strong message that Alberta expects fair treatment in its economic dealings.
The backdrop of Smith's demands and proposed panels is significant. The first Fair Deal Panel was established by former Premier Jason Kenney in 2019 as a response to widespread frustration with the federal government’s perceived neglect of Alberta’s needs. Kenney’s panel suggested various measures to enhance Alberta’s autonomy, yet many of its recommendations remain unexecuted, leading to skepticism about whether a second panel under Smith would have any more substantial effect.
The rise of the second Fair Deal Panel, as proposed by Smith, aims to foster more substantial engagement with Albertans to decide on future actions. The Premier recognizes that the dynamics within her province necessitate a responsive governance model that genuinely reflects the populace's wishes, especially when she states, “This is something Albertans are going to have to be very engaged in over the next number of weeks and months.”
Critics have emerged in response to Smith's assertive stance. NDP Leader Naheed Nenshi criticized her approach, accusing Smith of “playing chicken with people's lives” in an environment already strained by tariffs and economic uncertainties. Nenshi characterized Smith's strategy as juvenile and irresponsible, arguing that such tactics do not benefit Alberta's essential economic interests.
In summary, the unfolding events in Alberta suggest an escalating confrontation between the provincial government and Ottawa as Danielle Smith's administration presses for sweeping policy changes. Whether Smith's tactics resonate with the public or engender a substantial political crisis remains to be seen, but her commitment to direct democracy and an active role for Albertans in national discussions indicates that Alberta is prepared to assert its interests in the face of perceived neglect from the federal government.
