By Amanda Stephenson
CALGARY, March 11 (Reuters) – Canada’s oil industry said on Wednesday there is little it can do to increase crude production in the short-term, even as the Canadian government sought ways to help global efforts to stabilize oil prices during the Iran war.
The head of the Canadian Association of Petroleum Producers said the world’s fourth-largest oil-producing nation is already at record-high levels of oil and natural gas output and exports, and has very minimal short-term ability to further increase production.
Canada currently has just one crude pipeline with direct access to international markets. The Trans Mountain pipeline, which runs from the oil producing region of Alberta to the West Coast, is nearly 90% full, said CAPP CEO Lisa Baiton.
“Any meaningful new production growth would require additional pipeline capacity and additional export capacity, which is not available in Canada today,” Baiton said in an interview.
Prime Minister Mark Carney’s government said it supports international action on energy security, and is working urgently with industry to assess the possible pace and scale of Canadian action.
The government is talking to the country’s oil producers about delaying planned maintenance projects at oil sands facilities in order to temporarily increase output, Natural Resources Minister Tim Hodgson told reporters in Ottawa. It is also asking Canadian refineries that are using imported oil to use more domestic oil, in order to free up supply in other regions.
The International Energy Agency on Wednesday agreed to release 400 million barrels of oil, the largest such move in its history.
Canada is a member of the IEA, but does not have its own strategic petroleum reserve because it is a net exporter of oil.
“There’s nothing Canada can do, let’s be real,” said Rory Johnston, founder of the Commodity Context newsletter.
While some companies may delay planned maintenance this spring to capitalize on higher oil prices, they would do that because of market signals, not government direction, he added.
It is possible that higher demand from Asian customers could result in more Canadian barrels flowing west for export overseas via the Trans Mountain pipeline, as opposed to moving south to U.S. refining destinations, Johnston said.
That would help since the epicenter of the supply loss is in Asia, but if it happened, it would be market-based and not government-ordered, he added.
Canada produced on average 5.3 million barrels per day of crude oil in 2025, according to the Canada Energy Regulator.
(Reporting by Amanda Stephenson in Calgary; Editing by Caroline Stauffer, David Gregorio and Deepa Babington)
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