Alberta Premier Danielle Smith Visits Mexico to Strengthen Energy Relations

The Canadian province of Alberta is seeking to strengthen its ties with Mexico, particularly in the energy sector. Alberta's first minister, Danielle Smith, visited Mexico to discuss potential exports of oil and gas to the country. The visit comes after a meeting between the Canadian foreign and finance ministers with Mexico's president, Claudia Sheinbaum. Alberta now has the ability to export oil and gas to Mexico thanks to new facilities in the Pacific. Smith hopes to showcase Alberta's strong companies and negotiate potential deals with Pemex and other Mexican firms.

Alberta Premier Danielle Smith visited Mexico this week to strengthen bilateral relations, particularly in the energy sector. The visit follows a meeting between Canadian foreign and finance ministers with Mexican President Claudia Sheinbaum, highlighting the potential for increased energy cooperation between the two nations [1].

Smith emphasized the importance of diversifying Canada's energy exports, given the recent trade tensions with the United States. Alberta now has the capability to export oil and gas directly to Mexico through new Pacific Ocean export facilities. "It just makes sense to see, now that there is a little turmoil in the relationship with the United States, if there’s ways that we can strengthen the bilateral relationship between Mexico and Canada," Smith said in an interview at a Mexico City hotel [1].

During her two-day trip, Smith planned to meet with representatives of state oil giant Petroleos Mexicanos (Pemex), as well as officials from Mexico’s foreign ministry and companies from various industries. She intended to showcase the strength of Alberta companies like TC Energy Corp. and ATCO Ltd. [1].

The Alberta leader arrived in Mexico a week after Canada's top diplomat and finance chief visited for talks with Mexican President Claudia Sheinbaum. Both nations are grappling with the protectionist turn taken by the US under Donald Trump. "We’ve been very clear as a country that if the Americans are going to be resistant to receiving imports, that it’s up to us to try to find new markets and new friendships," Smith said [1].

With the Trans Mountain pipeline expansion beginning operations last year near Vancouver and cargoes now shipping from the LNG Canada facility in northern British Columbia, Alberta is finally able to export both heavy oil and natural gas by sea. This capability could benefit Mexico, which currently depends on the US for approximately 70% of the gas it consumes [1].

Smith noted that Mexico seems to need a more secure supply of gas and heavy oil for power generation and fuel development. "There’s just a way for us to be able to do that now on the ocean that we didn’t have before, and so I think that that’s a good conversation for us to have," she said [1].

The visit comes at a time when Chevron, a major energy player, has been strategically reinventing itself in the energy sector. In 2025, Chevron completed a $53 billion acquisition of Hess Corporation, integrating Guyana's Stabroek Block and U.S. Bakken shale assets to strengthen its integrated energy position. This acquisition added 1 million BOE/day production in the Permian and 750K bpd growth potential in Guyana, while generating $5.5 billion in shareholder returns [2].

Chevron's strategic shift to profit-focused growth over volume expansion positions it as a low-growth oil market leader. The company is guided by a $12.5 billion free cash flow projection by 2026 and a 4.5% dividend yield, making it an attractive option for income-focused investors. Chevron's focus on operational excellence and cost discipline has created a sustainable model, making it a buy-and-hold energy sector anchor [2].

In conclusion, Alberta's efforts to strengthen ties with Mexico in the energy sector are part of a broader strategy to diversify Canada's energy exports. Meanwhile, Chevron's strategic reinvention demonstrates how major energy players can thrive in a low-growth oil market through disciplined capital allocation and operational excellence.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-12/alberta-bolsters-canada-mexico-energy-ties-as-trump-upends-trade
[2] https://www.ainvest.com/news/chevron-2025-strategic-reinvention-blueprint-energy-sector-dominance-growth-era-2508/