Key Takeaways
- Canada’s oil and gas reserves are increasing, with Alberta’s natural gas reserves growing by over 400% and oil reserves increasing by 7 billion barrels.
- The country is on the cusp of a "golden age" for building major energy projects, with pipeline builders eager to get to work.
- New pipeline export capacity could have generated $38 billion in exports to non-U.S. destinations in 2024.
- Keyera Corp.’s $5.15 billion acquisition of Plains American Pipelines LLP’s Canadian natural gas liquids business will create a cross-Canada NGL corridor.
- Canadian oil is crucial to the United States, with many refineries designed to process heavy oil from Canada.
Introduction to Canada’s Energy Landscape
Canada’s energy landscape underwent significant changes in 2025, with the country’s oil and gas reserves playing a crucial role in maintaining its independence. The Canadian Energy Centre’s top five most-viewed stories of the year highlight the importance of these reserves and the potential for growth in the energy sector. One of the key stories is the increase in Alberta’s oil and gas reserves, which has bumped Canada into the global top 10 for natural gas reserves and solidified its position as the fourth-largest holder of oil reserves in the world.
Growing Oil and Gas Reserves
The increase in Alberta’s oil and gas reserves is a significant development for Canada’s energy sector. Analysis commissioned by the Alberta Energy Regulator found that the province’s natural gas reserves grew by over 400%, while its oil reserves increased by 7 billion barrels. This growth is likely to become increasingly important as global demand for energy continues to rise, and other sources of production are limited. According to McDaniel & Associates, which conducted the report, these reserves will play a critical role in meeting future energy needs.
Pipeline Builders and Energy Projects
Canada’s pipeline builders are eager to get to work on major energy projects, with the Pipe Line Contractors Association of Canada and the Progressive Contractors Association of Canada (PCA) launching advocacy campaigns to urge politicians to focus on getting these projects built. The PCA’s "Let’s Get Building" campaign highlights the importance of these nation-building projects, which will generate new trading partnerships, create good jobs, and contribute to a more stable economy. The eagerness to build is shared by the Edmonton-based PCA, which believes that the sooner these projects get underway, the sooner Canadians will reap the rewards.
Missed Opportunities and Economic Benefits
A report by the Montreal Economic Institute (MEI) found that if the proposed Energy East and Gazoduq/GNL Quebec projects had been built, Canada would have been able to export $38 billion worth of oil and gas to non-U.S. destinations in 2024. This represents a significant missed opportunity for the country, as these exports would have generated more prosperity for Canada and more revenue for governments. The MEI believes that everybody wins with these kinds of infrastructure projects, which would have created more jobs and stimulated economic growth.
Keyera’s Acquisition and Natural Gas Liquids
In June, Keyera Corp. announced a $5.15 billion deal to acquire the majority of Plains American Pipelines LLP’s Canadian natural gas liquids (NGL) business. This acquisition will create a cross-Canada NGL corridor, connecting NGLs from the growing Montney and Duvernay plays in Alberta and B.C. to markets in central Canada and the eastern U.S. seaboard. The acquisition is seen as a positive development for the region, with Sarnia mayor Mike Bradley stating that having a Canadian source for natural gas would be preferred. The acquisition will strengthen the region as an energy hub and create new opportunities for economic growth.
Canadian Oil and the United States
The United States has become the world’s largest oil producer, but its reliance on oil imports from Canada has never been higher. Many refineries in the United States are specifically designed to process heavy oil from Canada, primarily in the U.S. Midwest and U.S. Gulf Coast. The top five U.S. refineries running the most Alberta crude are Marathon Petroleum, Exxon Mobil, CHS Inc., Phillips 66, and Citgo. Canadian oil is crucial to the United States, and the country’s energy sector will continue to play an important role in meeting U.S. energy needs. As the global demand for energy continues to rise, Canada’s oil and gas reserves will become increasingly important, and the country’s energy sector will continue to grow and evolve to meet these needs.