The claim made by Trump that America gives $200 billion annual subsidies to Canada is both preposterous and demeaning to anyone who can perform basic arithmetic and comprehend trade principles. The reality is exactly the opposite, especially when you look at what’s happening in the oil patch where Canada gets royally screwed every single day.
The system operates as follows and it is simple yet brilliant. Canada generates substantial heavy crude oil production primarily through the extraction of oil sands in Alberta. We’re talking about 4.2 million barrels everyday worth over $100 billion annually. The main issue is that Canada lacks sufficient refining capacity to transform its oil into gasoline, diesel and jet fuel. So, we ship almost all of this valuable crude south to American refineries at bargain basement prices.
The Americans prefer our heavy crude because their refineries are specifically designed to handle it. The price of our oil stands at $65 per barrel but this seems reasonable until you discover that the world benchmark price is $10 higher because our oil requires more complex refining processes. The discount exists to compensate for their additional processing expenses, yet it ends up as unearned profit for their company.
Then comes the magic trick. The American refineries process our inexpensive Canadian crude oil to create finished products including gasoline and diesel. Some of that refined product gets sold back to us – and we pay top dollar for it. Canada imported $16.8 billion worth of refined petroleum products from the US in 2024, buying back our own oil in processed form.
The Americans will make the most profit at this point. The company processes our oil before exporting most of it to other countries where they earn substantial profits. The United States achieved the position of global refined oil leader through its $117.5 billion export of refined petroleum products across the world during 2024. A big chunk of that came from processing our cheap Canadian crude and flipping it for premium prices on the international market.
So, let’s do the math that MAGA apparently can’t. Canada sells America $100 billion worth of crude oil. America sells back maybe $17 billion worth of refined products to Canada, then turns around and exports over $117 billion worth of refined products globally – much of it made from our oil. Who’s subsidizing who here?
Canada would demonstrate its opposition to the Americans by constructing domestic refineries to eliminate the need for American middlemen. We should process our oil at home instead of shipping crude south and then buying back expensive gasoline to sell finished products directly to global markets. The profits would stay in Canada instead of padding American oil company margins.
But here’s where it gets sinister. There are suspicious forces at work trying to make sure that never happens, and they’re targeting Alberta specifically. It’s no coincidence that separatist movements have suddenly popped up in Alberta just as the province’s oil wealth becomes more valuable. These movements lack organic grassroots characteristics because they possess the same characteristics as foreign interference which America has employed to destabilize resource-rich regions throughout decades.
The playbook is always the same. Identify an area that contains important natural resources. Identify local grievances and cultural differences. Fund and amplify separatist voices. The central government should experience such extensive chaos and division that it becomes unable to maintain control. Then swoop in as the “helpful neighbor” ready to provide security and economic partnership on very favorable terms.
The United States supported rebels in Nicaragua to remove a government that refused to cooperate with American business operations. We saw it in Iran when the CIA helped topple a democratically elected government that wanted to nationalize oil resources. The US supported a coup in Guatemala to protect banana company profits. We witnessed this process in Hawaii where American business interests expanded until the islands became destined for annexation.
Now look at what’s happening in Alberta. Separatist groups are suddenly flush with cash and organizing slick campaigns. Billboards calling for Alberta to join the US are popping up along major highways. Social media is flooded with content promoting the idea that Alberta would be better off as an American state rather than a Canadian province. Professional organizers who obtain their funding from unknown sources are organizing rallies to support separation referendums.
These aren’t coincidences. This is textbook American resource extraction strategy, and Albertans are being played like a banjo at a country music festival. The objective is not Alberta independence but Alberta dependence on American markets, American refineries, and ultimately American control.
The separatist pitch sounds appealing on the surface. Alberta has oil wealth, so why share it with the rest of Canada? Why send transfer payments to other provinces? Why deal with federal environmental regulations that limit oil development? Just join the US and keep all that oil money for yourselves.
The type of thinking that enables foreign powers to divide and conquer is precisely this. A separated Alberta would be a junior partner in an American-dominated energy market, not an equal player. The United States provides oil-producing states with employment opportunities and tax income but multi-national corporations and financial institutions in New York and Houston receive the majority of the profits.
The remaining regions of Canada would lose their access to Alberta’s oil resources at the same time when the world shifts toward alternative energy sources. It’s a lose-lose scenario for everyone except American oil companies and the politicians they’ve bought.
The solution exists before us but Canadians need to become aware of the actual situation. Instead of fighting each other over how to split up oil revenues, we should be building the infrastructure to capture more of the value chain ourselves. The establishment of additional refineries in Canada would create employment opportunities while generating tax income and enabling Canada to manage its energy resources independently.
We need to be extremely careful about anyone who supports separatism especially when their funding sources are unknown and their positions are perfectly aligned with what benefits American interests. Real Alberta patriots would want to build up Canadian energy independence, not hand over the province’s resources to foreign corporations.
The Americans are playing a long game here, and they’re counting on Canadians being too polite, too naive, or too divided to see what’s happening. They want us fighting among ourselves while they laugh all the way to the bank with our oil wealth.
It’s time for Canadians to get wise to the hustle. Our oil, our refineries, our profits. Everything else is just letting America pick our pockets while convincing us we should be grateful for the privilege.
-Walter Simmons, Canadian Correspondent to FUSA