By Georgina McCartney
(Reuters) -Alberta Premier Danielle Smith said on Monday that the Canadian province would continue to supply crude oil to the United States but that U.S. President Donald Trump's tariff threats also underscored the need for new markets.
She said U.S. tariffs currently do not apply to Canadian crude oil, but that producers were being required to fill out paperwork to prove their supplies are in compliance.
"I think that we should have a zero tariff on this critical resource," she said at the CERAWeek energy conference in Houston.
Canada could increase its oil pipeline export capacity to the U.S. by 2 million barrels per day, Alberta's premier added.
"Alberta is and will continue to supply energy to the United States and support America's ambitions of global energy dominance," she said, a phrase touted by the Trump administration.
"There's a number of different pipeline projects that would allow us to increase the amount of oil coming to the United States, if they're interested in partnering with us. But of course, none of those conversations can begin in earnest while we're in the middle of a tariff fight," the premier said.
Alberta is on a path to double its oil and gas production, the premier added without giving a timeline. Smith said that Canadian producers have not cut production in response to tariffs.
"I suspect what will happen is we'll just look for new markets, if we have to," pointing to Spain and India as potential buyers of Canadian heavy oil.
The premier urged faster approvals for pipeline projects, saying regulations and permit delays must not hinder future expansion.
(Reporting by Georgina McCartney and Jarrett Renshaw, Richard Valdmanis; Editing by Lisa Shumaker)