Alberta Plans Investment in Japan’s Refining Sector Including Coker Unit Amid Falling Oil Prices and Rising C$6.5 Billion Deficit Amid U.S. Tariffs

Alberta, Canada's top energy-producing province, is in discussions to invest in Japan's refining sector, potentially funding a coker unit to process more Canadian heavy crude oil. This move aims to boost Alberta's oil exports and reduce reliance on the U.S. market. Meanwhile, Alberta is facing economic challenges as falling oil prices and U.S. trade tensions, including tariffs imposed under the Trump administration, have contributed to a widening provincial budget deficit. Alberta's deficit is projected to reach C$6.5 billion ($4.7 billion) for the fiscal year ending in March, an increase of C$1.3 billion from previous estimates. The broader Canada-U.S. trade relationship is also under strain, with Canada's goods trade deficit growing amid the stronger Canadian dollar and tariffs. The U.S. is Canada's largest trade partner, with $412 billion in exports to Canada and $350 billion in imports, alongside significant economic contributions from Canadian tourism to U.S. states such as Nevada. Critics of the tariffs argue they increase costs and uncertainty for manufacturers and consumers in both countries.