The Dollar’s New Deal: Exit the Middle East, Enter Alberta

Since 1973, the legitimacy of the US dollar (USD) has hinged on the petrodollar agreement, where global oil trade—primarily from the Middle East—was exclusively conducted in USD. The United States secured this arrangement through its unparalleled global naval dominance, controlling critical maritime chokepoints such as the Strait of Hormuz, the Suez Canal, the Bab el-Mandeb strait, the Strait of Malacca, and the Taiwan Strait. This military supremacy effectively cemented the USD's status as the indispensable global reserve currency.

The BRICS Challenge and the Changing Landscape

However, recent geopolitical shifts spearheaded by BRICS nations—Brazil, Russia, India, China, and South Africa—have challenged this long-standing arrangement. These countries are actively diversifying away from dollar-based trade, establishing alternative financial systems, and building alliances that threaten the traditional dollar-centric global trade structure. China's increased influence over global ports and trade routes, coupled with Russia's moves away from the dollar in oil transactions, have especially pressured the petrodollar system.

Shifting US Priorities: Moving from the Middle East to Canada’s West

In response, the United States is strategically repositioning its energy and economic foundations closer to home, notably towards Canada's resource-rich western provinces:

Alberta: Renowned for vast oil sands and natural gas reserves, Alberta is emerging as a cornerstone in America's redefined energy strategy. Its integration through pipelines and infrastructure development represents a shift toward securing a stable and trusted energy supply.

British Columbia (BC): The development of Liquefied Natural Gas (LNG) export facilities in BC, especially the upcoming LNG Canada terminal at Kitimat, is crucial. This infrastructure provides direct access to Asian markets, reinforcing North American energy security and currency legitimacy without relying on distant geopolitical hotspots.

From Naval Dominance to Energy Integration

The US shift towards Canada’s west symbolizes a transition from relying on distant naval supremacy in volatile regions to a stable, integrated North American energy hub. By consolidating these North American energy resources, the United States prepares to reduce its historical military commitments in the Middle East and refocus its strategic and economic priorities closer to home.

A New Currency Backing: Energy and Infrastructure

The future of USD legitimacy lies less in controlling distant maritime chokepoints and more in tangible, integrated regional assets:

Energy: Direct access and control of Alberta’s oil and BC’s gas.

Infrastructure: Pipelines, LNG terminals, and energy export networks.

Economic Stability: Reduced reliance on foreign conflict zones, minimizing geopolitical risks.

North America's Emerging Fortress

Ultimately, this strategic shift underscores America’s evolving economic doctrine. As the petrodollar era faces challenges from BRICS-led initiatives, the US is proactively building a secure, domestically anchored energy fortress in North America's west, redefining global currency dynamics for decades to come.