Key Takeaways
- Canada’s energy landscape underwent significant changes in 2025, with oil and gas playing a crucial role in maintaining the country’s independence amidst mounting U.S. economic pressures.
- Alberta’s oil and gas reserves have increased substantially, with natural gas reserves rising by over 400% and oil reserves growing by seven billion barrels.
- Canada’s pipeline builders are eager to commence work on major energy projects, which could lead to a "golden age" for the industry.
- The construction of new oil and gas pipelines could have yielded a $38 billion economic opportunity for Canada, according to the Montreal Economic Institute.
- Canadian oil is essential to the United States, with many refineries relying heavily on imports from Canada to process heavy oil.
Introduction to Canada’s Energy Landscape
Canada’s energy landscape changed significantly in 2025, with mounting U.S. economic pressures reinforcing the central role oil and gas can play in safeguarding the country’s independence. The Canadian Energy Centre’s top five most-viewed stories of the year highlight the importance of oil and gas in Canada’s energy landscape. From the growth of Alberta’s massive oil and gas reserves to the eagerness of Canada’s pipeline builders to commence work on major energy projects, these stories demonstrate the critical role that oil and gas play in Canada’s energy landscape.
Alberta’s Growing Oil and Gas Reserves
The analysis commissioned by the Alberta Energy Regulator increased the province’s natural gas reserves by more than 400 per cent, bumping Canada into the global top 10. Even with record production, Alberta’s oil reserves – already fourth in the world – also increased by seven billion barrels. According to McDaniel & Associates, which conducted the report, these reserves are likely to become increasingly important as global demand continues to rise and there is limited production growth from other sources, including the United States. This growth in oil and gas reserves is a significant development for Canada’s energy landscape, as it positions the country as a major player in the global energy market.
Pipeline Builders Ready to Commence Work
Canada’s pipeline builders are ready to get to work, with the Pipe Line Contractors Association of Canada and the Progressive Contractors Association of Canada launching advocacy campaigns to urge politicians to focus on getting major projects built. The PCA’s "Let’s Get Building" campaign, for example, emphasizes the importance of commencing work on nation-building projects, which could lead to new trading partnerships, good jobs, and a more stable economy. The eagerness of Canada’s pipeline builders to commence work on major energy projects is a positive development for the industry, as it could lead to a "golden age" for pipeline construction in Canada.
Missed Opportunities in Pipeline Construction
A report by the Montreal Economic Institute highlighted the economic opportunity that Canada missed by not building new pipeline export capacity. The report 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 missed opportunity is significant, as it could have generated substantial revenue for governments and created new jobs and economic growth. The report’s findings emphasize the importance of investing in pipeline infrastructure to capitalize on Canada’s energy resources.
Keyera’s Acquisition of Natural Gas Liquids Business
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, creating a cross-Canada NGL corridor that includes a storage hub in Sarnia, Ontario. The acquisition will connect NGLs from the growing Montney and Duvernay plays in Alberta and B.C. to markets in central Canada and the eastern U.S. seaboard. This deal is significant, as it strengthens Canada’s position in the global energy market and provides a Canadian source for natural gas liquids.
The Importance of Canadian Oil to 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, primarily in the U.S. Midwest and U.S. Gulf Coast. According to the Alberta Petroleum Marketing Commission, the top five U.S. refineries running the most Alberta crude are Marathon Petroleum, Exxon Mobil, CHS Inc., Phillips 66, and Citgo. The reliance of these refineries on Canadian oil highlights the importance of Canada’s oil exports to the United States and underscores the need for continued investment in pipeline infrastructure to facilitate the transportation of oil from Canada to the United States.