Oil and gas
Global energy
powerhouse
Rich in resources and expertise, Canada is the stable choice for global oil and gas companies. The country holds 10% of the world’s proven oil reserves – the largest open to free-market investment.
Canada’s energy infrastructure is built for growth. With deep-water ports, refineries and a vast network of pipelines, the country is ready to meet rising global demand for energy, including liquefied natural gas (LNG).
Global companies with bold ambitions benefit from Canada’s proximity to markets in Asia and Europe. Its stable regulatory framework and transparent permitting processes support innovation and reduce risk.
Discover Canada’s strengths and opportunities in oil and gas.
Canadian leadership in oil and gas
Exporting oil and gas globally
For oil and gas producers, Canada is a gateway to world markets. Exports of oil and gas account for approximately 26% of Canada’s total exports each year.
Canada produces 5.1 million barrels of crude oil per day and exports 4.1 million barrels daily, largely from Alberta, Saskatchewan and Newfoundland and Labrador’s offshore production. Most Canadian oil exports go to the United States, which relies on Canada for 60% of its crude oil imports.
As the world’s fifth largest gas producer, Canada accounts for 7% of global exports – a figure that is set to grow with the huge opportunity Canada offers. Currently, most gas production takes place in Alberta and British Columbia.
Global companies with bold ambitions benefit from Canada’s 15 free trade agreements that provide preferential market access to 51 countries and 1.5 billion consumers. Cross-country rail and transportation networks, pipelines, export facilities and port infrastructure connect your product to global markets.
High-growth opportunities in LNG
Canada is a rapidly growing global market for liquefied natural gas (LNG) expansion. LNG projects estimated at $109 billion in potential capital investment are operating or planned in British Columbia, representing a total export capacity of over 50 million tonnes per annum (MTPA) of LNG.
Canada’s East and West coasts offer deep-water ports and LNG-ready infrastructure. Their proximity to Europe and Asia and long-term export potential position Canada as a future global LNG supplier.
Canada investment highlight
LNG Canada leads the largest private sector project in Canada
A joint venture comprised of five global energy companies – Shell, PETRONAS, PetroChina, Mitsubishi Corporation and KOGAS – LNG Canada chose Kitimat, British Columbia for its access to abundant, low-cost natural gas, infrastructure and ice-free harbour.
It is the largest private sector investment in Canadian history. The company has already started shipping LNG and expects to export up to 14 million tonnes per year, ensuring a secure supply for global markets.
LNG Canada Phase 2 is one of the first projects under consideration by the Government of Canada’s Major Projects Office.
“LNG Canada will export Canadian natural gas to Asian markets, putting Canada on the global map of LNG exporting countries and creating a world-leading LNG industry in British Columbia and Canada.”
Meeting global demand for cleaner production
Canada’s oil and natural gas industry spends over $6.6 billion annually on environmental protection and resource management activities. The sector uses carbon capture and storage, methane reduction, water recycling and other technologies to mitigate emissions.
This commitment to cleaner, more efficient energy production is a major draw for global companies. Since 2000, oil and gas producers have cut greenhouse gas emissions per barrel by 36% and reduced their use of freshwater in production by 66%. Plus, Canadian oil operations are among the most water-efficient in the world. Oil sands companies recycle 80% of water in established operations and 94% in situ.
A leading force for environmentally responsible projects, Canada is the best jurisdiction in which to expand your operations.
Fast-tracked approvals and incentives to support your success
Canada’s Major Projects Office now offers financing for energy projects, together with faster project reviews and simpler regulatory processes. Approvals are fast-tracked to a maximum of 2 years, making it easier to structure deals and access capital.
The Government of Canada is committed to advancing clean processes and environmentally friendly practices in the oil and gas industry. There’s a range of programs and incentives available:
Canada Growth Fund: Invests in low-carbon projects, technologies and businesses.
CCUS Investment Tax Credit: Applies a tax credit to eligible costs for qualified CCUS projects. Offers engineering, scientific and technical guidance.
Clean Economy Investment Tax Credits: Provides tax credits and technical and engineering support for clean technology and cleantech manufacturing projects.
Clean Fuels Fund: De-risks capital investments to build new or expand existing clean fuel production facilities, including facility conversions.
Strategic Response Fund: Supports large-scale projects through funding for innovation, technology development and capital investments that modernize operations and expand industrial capacity.
Why choose Canada
Established fuel supply chains
Deep-water ports, refineries and vast network of pipelines
Stable, business-friendly environment
Lowest marginal effective tax rate on new business investment in the G7
Explore Canada’s energy sector
Let’s work together
At Invest in Canada, we are dedicated to your company’s success. Our team is your trusted guide to investing in Canada. We get to know your business, offer insights and information and connect you with the right people and places to support your decision.