Danielle Smith's direct interventions and their purported positive effects

Danielle Smith's direct interventions and their purported positive effects are nothing more than an illusion designed to distract the people of Alberta.

The primary beneficiaries of her actions appear to be the Canadian Association of Petroleum Producers (CAPP) and their foreign investors. Here's the evidence. Since 2017, Canadian companies engaged in the extraction and transportation of hydrocarbons have disbursed $41 billion more to their debt and equity holders than to their workforce. In 2023, these owners raked in a record $29 billion, while workers received even less than they did in 2022, which itself was already lower than in 2014.

Canadian oil and gas firms are seizing the trade war and the public's desire for greater economic autonomy as a chance to further their own interests, all while presenting their demands as advantageous for the nation. Executives from 14 of Canada's largest oil and gas companies issued an open letter to the leaders of the country's major federal parties, outlining the government response they desire regarding Trump's tariffs. Unsurprisingly, they urged for increased investment in oil and gas.

Conservative leader Pierre Poilievre subsequently integrated their entire wish list into his party's campaign platform. A review of public financial data for 12 of these companies reveals that all achieved record profits in the past four years. Profits soared particularly in 2022 and 2023, benefiting from soaring oil prices that also contributed to decades-high inflation. Yet, despite these impressive profits, most companies are not making record investments; instead, they are engaging in extensive share buybacks. From 2020 to 2023, the combined profits of these 12 companies were 111 percent higher compared to the four years prior to the pandemic (2016-2019).

Their combined dividends increased by 60 percent, and share buybacks surged by 235 percent, whereas net investments—capital expenditures after depreciation—plummeted by 92 percent. It is especially notable that Imperial Oil, which waves the Canadian flag, is primarily owned by the American oil giant Exxon Mobil. Since 2020, Imperial has sent $11.2 billion back to Exxon through dividends and share buybacks while investing a meager $5.3 billion before depreciation, which amounts to a net investment that is negative. This indicates that, despite record profits, Imperial is depleting its productive assets to enrich its American majority owner. Canada's fossil fuel-dependent regions hold immense potential. However, cultivating that potential requires public programs funded by public dollars. Private enterprises have repeatedly demonstrated a reluctance to lead in the necessary directions for these regions. While the uncertain global economic landscape makes them hesitant to take on risky investments, Albertans cannot afford to wait for the private sector; they need proactive leadership from the public sector. In 2022, the Alberta Federation of Labour published a report titled "Skate to Where the Puck is Going," which offers numerous innovative, forward-thinking ideas for developing the province's economy.

This vision starkly contrasts with Danielle Smith's approach, which limits Albertans to merely extracting and exporting fossil fuels. Such low expectations undermine the dignity of average Albertans, aligning instead with the elitist mindset of Smith's true supporters: the exceptionally wealthy executives and proprietors of oil and gas companies. D.T. Cochrane is a senior economist with the Canadian Labour Congress, the largest labor organization in Canada.
Source @Jon Auger