I am starting a series of articles on Canada, its provinces, territories and confederation for the purpose of exploring a vision for the future. Let’s begin at the currently obvious place – Alberta. 

Alberta’s economic model is deeply tied to its resource wealth, particularly oil and gas, and its assertive stance on resource control has generated ongoing tensions with federal environmental and regulatory policy. While constitutionally grounded in provincial ownership rights, Alberta’s insistence on autonomy often clashes with the cooperative principles necessary in a federal system. This commentary explores the roots of this conflict and offers pathways toward a more collaborative and constructive intergovernmental relationship.

Constitutional Foundations and Ownership of Resources
Section 92A of the Constitution Act, 1982 affirms that Canadian provinces have the exclusive right to manage and develop their natural resources. Alberta has used this authority to shape its energy policy and economic strategy, which remain heavily reliant on oil and gas extraction.

However, under Section 91 of the Constitution Act, 1867, the federal government retains authority over matters of national and international trade, environmental protection, and interprovincial infrastructure. These overlapping jurisdictions mean that large-scale energy projects—such as pipelines—often require federal approval and regulation, leading to friction between provincial ambitions and federal oversight.

Fiscal Federalism and Perceived Inequities
Alberta’s role as a “have” province in the equalization system has been a long-standing source of grievance. Despite experiencing downturns in the oil economy, Alberta does not receive equalization payments due to the formula used to calculate fiscal capacity. While the system aims to ensure reasonably comparable levels of public services across Canada, many Albertans view it as a redistribution mechanism that penalizes economic productivity without adequately rewarding provincial contributions to national prosperity.

This sentiment is often exacerbated during periods of Liberal federal governance, when policies such as carbon pricing, environmental assessment reform (e.g., Bill C-69), and energy transport restrictions (e.g., Bill C-48) are interpreted as barriers to Alberta’s growth and autonomy.

The Political Psychology of Alienation
Alberta’s frustration with Ottawa is not merely legal or economic—it is cultural and emotional. The legacy of the National Energy Program (1980), perceived as a federal overreach into Alberta’s economy, continues to shape provincial attitudes. There is a widespread belief among many Albertans that their priorities are undervalued in national discourse, while their economic output is taken for granted.

This sense of alienation is particularly pronounced during Liberal governments, which are often associated with centralized governance, regulatory oversight, and climate policy that is seen as antagonistic to Alberta’s resource sector.

The Dilemma of Reciprocity
Despite its demand for autonomy, Alberta remains deeply integrated with the rest of Canada. It benefits from internal migration, national infrastructure, federal investment, and shared services. However, when national unity requires compromise, such as in building pipelines through BC or adhering to environmental targets, Alberta often adopts a defensive posture.

This tension between autonomy and interdependence is the core dilemma of Canadian federalism. While the provinces retain control over resources, their development impacts climate goals, international trade obligations, and national economic stability, issues that fall under federal jurisdiction.

Recommendations for Constructive Engagement
To resolve these tensions and restore national cohesion, both Alberta and the federal government must reconsider their approaches:

For the federal government:
• Strengthen regional engagement: Appoint trusted regional representatives to act as intermediaries between Alberta and federal departments.
• Clarify jurisdictional boundaries: Work collaboratively to define areas where federal environmental goals can be met without impeding provincial development.
• Modernize equalization: Review and revise the equalization formula to ensure transparency and responsiveness to changing economic realities.

For Alberta:
• Acknowledge interdependence: Embrace the reality that long-term prosperity requires cooperation, not confrontation.
• Diversify the economy: Invest in emerging sectors like hydrogen, critical minerals, and clean technology to reduce economic vulnerability.
• Engage Indigenous leadership: Collaborate meaningfully with Indigenous governments who hold treaty rights and are key to sustainable development.

Alberta’s assertiveness over resource development is constitutionally grounded, but politically volatile. The success of Canadian federalism depends not on uniformity, but on mutual respect and intergovernmental cooperation. Both sides must move beyond grievance-based politics toward a pragmatic and future-focused partnership that serves both regional needs and national interests.