There is almost an inexhaustible amount of oil and gas in Canada.

0:00 Speaker 1 Sunday morning. Well, what’s happening in North America with us this morning? Is Danielle Smith. She’s the Premier of Alberta, the province just north of US, and she’s a good friend, one smart lady, and has a heck of a lot of oil up there. Premier Smith tell us what’s going on in North America, what’s going on with oil, et cetera.

0:27 Speaker 2 Well, you probably know better than most because of the business interest that you have. It’s Canada’s a supplier to the United States of a heavy grade of oil that is only available from a few other jurisdictions in the world, some of them not so friendly, like Venezuela and Iran.

0:45 And we just did a reserve study at zero Week that we announced in March in Houston, where we confirm that we’ve got one point eight trillion barrels of this heavy brand of oil, of which about one hundred and sixty five billion barrels are recoverable at today’s technology, as well as one point thirty six quadrillion cubic feet of gas,

1:07 which about a one hundred and thirty trillion are recoverable right now, so it’s almost inexhaustible. And we have always had such a great trading relationship and friendship with the United States. We want to make sure that American consumers have low prices, and so when you get your oil from Canada, allows the American oil to be exported internationally.

1:29 And I think it’s a perfect partnership.

1:32 Speaker 1 I’ve spoken to President Trump in the past and we’ve discussed between the United States and Canada. We have one big powerhouse of energy, more than the rest of the world, and we can make North America self reliant, and that doesn’t even count what’s up in the Utic Sea.

1:57 Speaker 2 Very true, and when I hear the President talk about becoming a global energy superpower with energy dominance, I think that Canada can play an essential role on that. I kind of look at it as North American energy dominance because with our two oils being so different, we’re not really competitors, but together we can feed the entire world market.

2:22 I think that the US supply, especially coming out of the Gulf Coast, is especially geared towards Europe. We now have a Bitchmin pipeline to the West Coast, which can help go to our Asian markets. We also have a gas pipeline as well that is off our West coast that can also go to those Asian markets, whereas Louisiana

2:43 is one of the largest exporters of LNG. So we feed different markets, but it is complementary. And the vast bulk of what Canada produces, of course goes to the United States so that it can be refined into whether it’s asphalt or diesel, or gasoline or aviation fuel. So I think that if we can continue to go down

3:06 that pathway of mutual development, building some new pipelines, it seems to me that there’s there’s no reason why North America can’t continue that dominance path, especially as well on the on the gas side. I’ve noticed that Secretary Doug Bergham likes to talk about the AI data race. We are in a race with China on developing and manufacturing

3:27 technology through our intelligence through AI, and the big determining factor is going to be abundant and low cost electricity supplies, which comes from an abundant and low cost natural gas supply for the most part in both of our countries.

3:44 So I think that both of those races are pretty are very important to win, and it looks to me that Canada and the us have a lot of common cause on that.

3:53 Speaker 1 The other big item that that was talked about last week is the pipeline. I mean to transfer oil is through or gas. I guess through the pipelines is the most efficient. And I understand that that case in Minnesota that’s been up and down. It’s going to the Supreme Court in the United States and if that actually is up.

4:17 And the other thing news is your current premier said he wants more pipelines, So tell us about pipelines.

4:25 Speaker 2 Well, as you know, we had a prime minister, Justin Trudeau, who was increasingly unpopular because of the approach that he was taking I think largely to issues of energy. He met carbon taxes and punitive policies. He had to keep it in the ground kind of mentality, and I think Canadians rebelled against that. His replacement came in and almost

4:48 immediately changed the is changing gears talking about not only the need he eliminated the carbon tax, but now talking about the need to develop some of these nation buildings projects. And part of it is in reaction to the instability in our relationship right now with the United States, is that we know that we do have to have new markets,

5:11 whether it’s going to be in Europe and Asia. My view is it’s all of the above, north south, east west, and so I’d like to see new pipelines built across the our nation in Canada, but also new pipelines built down to the United States as well, because I think that the Americans are going to continue to need to

5:29 have this particular brand of heavy oil. We’ve got the largest refining capacity of heavy oil in the Texas Gulf Coast and that seems to marry perfectly with the supplies that we have in Canada. I know that the President expressed interest in restarting something like the Keystone Excel pipeline.

5:45 Might need a different route, might need to be called something different, but I know that there’s a few pipeline companies that are looking at that as an option also. So my view is all of the above. You probably saw, for instance, that OPEK has now redone its calculations and they think we’re going to need one hundred and twenty

6:03 three million barrels a day of oil by twenty fifty, and we currently have one hundred and four million barrels a day or thereabouts, so there is room for growth as we start seeing the rest of the world aspire to the same standard of living that we that we have in North America, and I think Canada and US

6:22 should play a big role in that premia.

6:25 Speaker 1 You said twenty fifteen or twenty.

6:26 Speaker 2 Fifty, twenty fifty, Yeah, I think that that’s it, because you know how what we’re seeing with the with I’ve talked to the Secretary General of the OECD, and.

6:38 Speaker 1 You know, I think for premia, I forget that’s only fift fifteen years away.

6:43 Speaker 2 Well, it’s a well twenty five years away. But you got to start building now if you’re going to grow to that, because it can take ten years to get up pipelines in place and in production. So we have to start scoping out what that’s going to look like right now. But the OECD Secretary channel is very, very

7:04 skeptical of the other forecasting companies. He calls them backcasting that they decide what they want oil production to be in twenty fifty and then say how much we would have to reduce production today to get there. That’s not really the proper way to do forecasting. You have to look at what the demand really is, what the growth is,

7:24 and be reasonable about that. Knowing that it’s in all of the above approach that the world is taking now to energy. So we feel some confidence that there is likely going to be in an increase in demand, and I certainly don’t want to see a constraints in supply because we know what happens when that occurs. Prices spike.

7:42 People feel it at the pumps, people feel it in every use that they have for fossil fuel products. And we’ve got to make sure that we’re being realistic about what that future state looks like.

7:54 Speaker 1 Premium Once make North America America and free, and then the next step is to make sure we bring back some of the industries that we exported to I guess Asia, China, et cetera.

8:11 Speaker 2 Yeah, we’re all going through this reckoning, aren’t we. Where I think we felt like with China, as they developed an economy, that they would become more politically free. I think that that was certainly what I thought. I was an intern at the Fraser Institute, which is one of our free enterprise think tanks, and I know that you’ve

8:28 got something similar in the US with CATO, and I think a lot of the think tankers thought that if you could continue to get people wealthier that they would start demanding democracy, they’d start demanding more political freedom, and it’s turned out not to be that way. China’s created a new form of predatory capitalism where they are undercutting

8:50 all of our supply chain, undercutting all of the critical minerals and industries that we need, especially not just for industrialization, but in the event that we would need it for military and we’re now left with a China that’s getting increasingly hostile to the West. So I think that it’s going to take some time to repatriate that supply chain,

9:12 but I think Canada can play a role in that. We’ve got We’ve got almost all of the critical minerals that North American needs. Saskatchewan has uranium, We’ve got there were three different critical minerals that China initially put a freeze on that are necessary for defense, gallium and timony and germanium, and we’ve got those as well. So I

9:34 think that we have the ability to be that that global supplier, and we’ve got such a strong relationship with the United States. We still continue to have more trade with the United States than any country in the world, whereas if you look around the world, most of the other nations in the world have increased their trade relationship

9:52 with China over the United States. So we think that this is a good place to start in having that reversal.

9:58 Speaker 1 Premier Danielle Smith, we got a one minute left. Anything else you want to tell the American people.

10:05 Speaker 2 Well, I hope that we can get through to a new negotiation on the USMCA. That’s been such a fabulous partnership where we’ve got integrated economies on everything from oil and gas and critical minerals all the way through to food supply and manufactured goods. And the sooner we could resolve that, I think, the sooner we can get back

10:25 to having a robust trade relationship that benefits both of US.

10:30 Speaker 1 I am sure that will happen because I know President Trump for fifty years. It’s going to happen.

10:38 Speaker 2 I like that and like your confidence. Thanks so much for your interest again, John, appreciate it.

10:43 Speaker 1 God bless you, God bless America. When I’ve said God bless America me I mean Canada and the United States. Thank you so much, you.

10:51 Speaker 2 Bet, thank you. Fine Now