Ford's Oil Cut Threat Exposes Alberta's Energy Achilles' Heel

A recent call by Ontario Premier Doug Ford to cut off Alberta's oil exports as a weapon against the United States has been widely criticized for its lack of understanding of the trade dynamics at play. The Alberta Institute's president, Peter McCaffrey, joined Ezra Levant on his show to discuss the implications of this move and how it affects the province's economy.

McCaffrey pointed out that Ontario and Quebec rely heavily on oil imports from the US, making a shutdown of Canadian oil exports a self-inflicted wound. He noted that Alberta has been proposing a pipeline project, Energy East, for 20 years to bypass the US, but it was killed by the Liberals.

The comparison between Alberta's oil and gas sector and Quebec's economy is also misleading, McCaffrey argued. 'Alberta's oil and gas exports are larger than all of Quebec's exports in total,' he said. To make a fair comparison, Quebec would have to tariff every single thing they export.'

Both Ezra Levant and Peter McCaffrey agree that the real threat is not a physical shutdown but an export tax, which could be imposed quietly by Bank of Canada Governor Mark Carney. The approaching referendum in Alberta on October 19 has kept Carney from pulling this trigger so far.