Canada is positioning planned oil output and higher natural gas exports as part of the International Energy Agency’s emergency response to the Iran war, pledging 23.6 million barrels toward a coordinated 400 million barrel release by 32 member countries.
Energy Minister Tim Hodgson said Friday that Canada will supply millions barrels of oil and ramp up natural gas exports in the coming months to help stabilize energy markets. The commitment supports a broader IEA effort to counter what the agency has described as the biggest oil market disruption in history after the Middle East conflict effectively shut the Strait of Hormuz and blocked regional oil and gas flows.
Brent crude settled above $100 a barrel for a second straight day on Friday and ended at its highest level in more than three years.
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Canada’s contribution is notable because it is not being drawn from an emergency stockpile. Unlike the US, Canada does not maintain a strategic petroleum reserve. According to a government official familiar with the matter, the 23.6 million barrels will come from planned production.
The US response remains much larger in scale. Washington plans to release 172 million barrels from its emergency reserve, with full delivery expected to take about 120 days.
Prime Minister Mark Carney said the 23.6 million barrels represent upcoming exports from Canadian firms, adding that Canada has some “margin to maneuver” but remains constrained by pipeline capacity.
“Listen, the oil market is tight. That’s the reality,” he said. “In a tight market, the last thing you need is to have more problems. And Canada is part of the solution in that regard.”
Carney further linked the immediate oil pledge to a broader policy push to expand Canadian export capacity. He said the government is looking to boost investment in the oil industry and is supporting Alberta’s proposal for a new west coast pipeline.
He also used the moment to highlight future production potential. Speaking in Holmenkollen, Norway, he said he had a productive conversation with Equinor ASA executives and described Bay du Nord, the company’s proposed offshore development off Canada’s east coast, as “a very attractive project.” Equinor’s website says the company is targeting a final investment decision in 2027.
Bloomberg News reported earlier in the week that Canada had been exploring options to boost supply, including delaying planned maintenance activities.
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