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Where does Danielle Smith’s loyalty lie?

To be charitable, perhaps it is not that Alberta Premier Danielle Smith doesn’t love her country, but that she loves Big Oil more. Photo by Alberta newsroom

Where do Danielle Smith’s loyalties lie? People asked this question after she revealed on MAGA-aligned media that she counselled Trump officials to pause the tariffs until after Canada’s federal election is over. Conservative Leader Pierre Poilievre is close to Trump's agenda, she said, but the trade war is boosting Liberal support

Trump changes his mind hourly, but the tariffs against Canada will likely be imposed on April 2nd. The issue isn’t whether Smith swayed Trump. It’s about where her loyalties lie.

Being offside with Team Canada is not new for Smith. In January, she undermined Canada’s bargaining position by breaking ranks with all other premiers and the prime minister when she balked at signing their joint tariff statement. Smith vehemently refused to include Canada’s strongest bargaining chip in its retaliation arsenal — an export tax on oil.

Does this mean Smith is disloyal? To be charitable, perhaps it is not that she doesn’t love her country, but that she loves Big Oil more. Smith first made her mark by riding the wave of oil patch anger at a boost in provincial oil royalties under then-premier Ed Stelmach and his Progressive Conservatives. The Wildrose Party was pulled from obscurity in 2009 by Big Oil with Smith at its head. She rode the party to the brink of power in 2012 before a disastrous merger attempt with the governing Prentice PCs two years later. 

Smith stepped away from politics for a while and lobbied for Big Oil on their “RStar” scheme to convince Alberta’s government to forgive $100 million in royalty payments to reimburse Big Oil for cleaning up orphan oil and natural gas wells they were legally obliged to clean up at their expense

Promoting a sweetheart deal for Big Oil corporations was standard for a paid lobbyist, but Smith crossed the line when she was later elected premier and implemented the massive giveaway scheme she had lobbied for.

Did Smith’s counselling Trump to pause tariffs constitute an attempt to spark foreign political interference? That’s debatable. What’s not debatable is that Smith’s unswerving loyalty to Big Oil makes her loyalty suspect. Every Big Oil corporation in Canada is either wholly or majority foreign-owned. Most of the foreign ownership is American. 

No majority Canadian-owned big oil corporation has existed since Suncor took over Petro-Canada in 2009. In researching Bloomberg terminals in 2021, I found that Suncor was 66 percent foreign-owned. Canadian Natural (CNRL) was 55 per cent foreign owned, Cenovus 72 per cent, Imperial 94 per cent and Shell 100 per cent. 

Calgary’s big five oil corporations are a major part of Danielle Smith’s base. They may wave the maple leaf and pose as Canadian, but when the showdown hits between Canadian sovereignty and annexation, what side will they be on? And what side will Smith be on?

Recently the UCP government made a fuss about foreign-funded environmentalists conducting what they called “anti-Alberta energy campaigns.” Prodded by the Canadian Association of Petroleum Producers (CAPP), the UCP government set up a public inquiry to examine the extent of foreign funding of environmental groups.

Ninety-seven percent of CAPP’s funding comes from foreign-owned corporations. CAPP uses its foreign funds to meddle in Canadian politics. Before the 2019 federal election, CAPP strategized behind closed-doors with the federal Conservatives to oust the Trudeau Liberals.

The public Inquiry was headed by Steve Allan. It found that only a pittance ( six per cent) of  environmentalists’ funding was foreign. Nevertheless, when its report was released, Alberta’s Energy Minister, Sonya Savage, said it was a “real concern” that any group is “influencing political and regulatory change using foreign funding.”

Agreed. But if the premise that whoever pays the piper calls the tune is sound, the overwhelmingly foreign-funded oil industry is a real concern. So should be the perception that Alberta’s premier is in its pocket. These questions are crucial when Canada may be annexed against Canadians’ consent.

Albertans are proud of their province and proud Canadians. When the chips are down, they will want to be sure their premier will hold her elbows up to defend Canada and our way of life. 

Gordon Laxer is the founding director of Parkland Institute at the University of Alberta and author of the peer-reviewed report Posing as Canadian: How Big Foreign Oil Captures Canadian Energy and Climate Policy.

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