Jason Kenney, the premier of Alberta – Canada’s biggest oil producing province – told the Financial Times he had held discussions with Washington about tariffs, as a global deal to reduce production appeared to be hanging by a thread. US President Donald Trump has called on rival oil producers to cut production by as much as 15m barrels a day but said on Friday that tariffs “are one tool in the tool box” if Saudi Arabia and Russia do not quickly reduce supplies, threatening a deepening schism with Washington’s key Middle East ally.
Mr Kenney said “prospective import tariffs on oil coming into North America” were under discussion with Washington, even as he signalled Alberta would be open to participating with Opec in cuts to oil supplies. Sonya Savage, Alberta’s energy minister, would dial into the online Opec+ meeting this coming week, he said.
“Opec+ started this fire and they have to put it out. We’re not going to surrender our industry and we’re prepared to go the distance here,” he said. Canadian provinces have autonomy over oil production policy, but joint tariffs with the US would require federal approval from Ottawa.
US officials confirmed the Department of Energy was studying whether tariffs would be a viable way to force Saudi Arabia and Russia’s hand, though the discussions are preliminary and among several other options. On Saturday, Mr Trump said he believed Saudi Arabia and Russia would soon end their price dispute, while taking shots at Opec+.
“I’ve been against Opec my whole life,” Mr Trump said. “I think they’re going to settle [the dispute], because they’ll be destroying themselves if they don’t.”