Energy Security in Canada

Energy Security in Canada - Canada's Role in Global Energy Security cover

Canada is a vast, resource-rich nation with huge potential to provide energy security to Canadians and the world. From our immense crude oil and natural gas reserves to our rich uranium deposits and nuclear power technology leadership, we have the resources to be the energy supplier the world needs.

As global consumption of nearly all forms of energy is expected to continue growing through 2050 ^[1][2], Canadian families have an immense opportunity to benefit by supplying even more Canadian-made energy to domestic and international markets.

Canadian Energy Security: Quick Facts

Despite being the third-largest global oil producer and fourth-largest oil exporter, Canada imports around 500,000 barrels of oil annually, mainly into the eastern provinces, valued at roughly $20 billion ^[4]
Despite being the fifth-largest natural gas producer and sixth-largest natural gas exporter, Canada imports more than 2.5 billion cubic feet (bcf) of natural gas per day, mainly into Ontario, Quebec, and New Brunswick ^[5]
Over the past several years, U.S. state governments have attempted to shut down Line 5, a critical pipeline that connects Western Canadian oil and natural gas liquids to eastern Canadian markets ^[5]
The Line 5 pipeline moves more than 50% of the oil consumed in Ontario, and two-thirds of the oil used in Quebec ^[5]
Canada is projected to double its electricity demand over the next 25 years ^[3]

Canada’s Energy Security Vulnerabilities

When it comes to energy security in Canada, many Canadians are unaware that we have significant vulnerabilities. Recent trade challenges with the U.S. – our largest trading partner, which accounts for the vast majority of Canada's imports and exports – have highlighted that relying on integrated cross-border pipelines to ship Western oil to Eastern provinces could very well be an energy security risk. Meanwhile, Canada’s eastern refineries continue to import around half a million barrels a day of oil from places like Nigeria, Saudi Arabia, and the U.S. – despite our country having the world’s third-largest proven reserves. Ontario, Quebec, and New Brunswick also import significant amounts of natural gas.

With the emergence of electric vehicles, heat pumps, and artificial intelligence (AI), Canada’s electricity demand is expected to double over the next 25 years ^[3]. Our communities and businesses will need new sources of power, while distribution networks must be expanded and modernized to supplement our growing electricity needs. Power grids across the country, with a few exceptions, remain relatively disconnected from one another. Significant work is required to create a fully integrated power grid that spans all jurisdictions, providing Canadians with a secure electricity supply for generations to come.

How to Ensure Canadian Energy Security

Canadians require new infrastructure, including pipelines and power lines, to connect Canada’s vast energy reserves and production not only to other provinces but also to diversified international markets. We need to have the capability to ship more of our oil and natural gas to Asia and Europe from our coastal regions. We need our provinces and territories connected via interprovincial transmission lines, allowing hydropower generation in Manitoba or Quebec, for example, to be shipped to places like Prince Edward Island and the Yukon.

Electricity demand in North America is poised to surge, with Canadian demand projected to double over the next 25 years. This will require a significant build-out of new power generation and transmission infrastructure to keep our homes, businesses, and industries running.

Canada also needs pragmatic policies that balance our energy security needs with other government initiatives. As an export-based economy that relies heavily on natural resources as a foundation of our success, we must take an “all-of-the-above” approach and support all forms of energy – wind, solar, oil, natural gas, hydro, geothermal, nuclear, etc. – ensuring a strong, prosperous, and energy-secure future for our families.

Canada’s Energy Security Opportunity: Quick Facts

global oil demand and supply - 2025 to 2050 - the world needs more Canadian oil

Global liquefied natural gas (LNG) demand is projected to double by 2050; Canada has an immense opportunity to benefit by providing LNG to the world ^[2]
Global oil demand is projected to reach 105 million barrels per day (bpd) by 2050, up from 100 million bpd in 2024; meanwhile, up to 15% of current supply – about 15 million bpd of production – must be replaced every year to meet global demand, another immense opportunity for Canadians ^[2]
With North American electricity demand set to expand rapidly over the next several years, Canada has vast generating capabilities, including hydro, nuclear, and other energy sources, that can help supplement power for emerging artificial intelligence (AI) and other technologies with high electricity demands
New energy technologies such as hydrogen are also immense opportunities for Canadians to benefit, by stepping up to provide domestic and international markets with a source of democratic, reliable supply

Canada’s Global Energy Security Opportunity

Today, roughly half the world’s population – approximately 4 billion people – lack adequate access to the reliable energy needed for housing, employment, infrastructure, and other essential human needs ^[2]. As global standards of living improve, the world will require more energy, not less, presenting a significant opportunity for Canada to meet the world's needs.

Worldwide, increasing geopolitical tensions have led to a restructuring of our global energy systems. Since 2022, for example, several nations have approached Canada, asking us to step up as a reliable source of natural gas, hydrogen, minerals, and other critical resources, as they seek to diversify away from unreliable suppliers. In fact, countries such as Malaysia, Japan, and South Korea are investing in Canadian upstream natural gas facilities to make our natural gas a key component of their energy supply ^[4].

Meanwhile, global demand for oil and gas is expected to continue growing for decades to come, with oil consumption projected to reach 105 million barrels per day by 2050 ^[2]. To meet this demand, the world will need to invest in new sources of supply. Canada’s vast, democratic reserves make us the perfect candidate to fill this gap.

Learn more at Canada Can Deliver today.

The World Needs More Canadian Energy

Canada has a generational opportunity to become a global leader in energy security, providing a reliable and democratic source of supply to our trade partners. By developing our abundant natural resource wealth and building new infrastructure, we can create countless jobs for Canadians, generate billions in economic activity, provide steady revenue streams for our governments, and ensure a prosperous future for our country. By supporting energy security here at home as well as our growing role as a democratic, reliable supplier to the world, we are supporting Canadian families and communities from coast to coast to coast.

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Energy Security in Canada: Frequently Asked Questions

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Q. What is the definition of energy security?

Energy security means having reliable, affordable energy available when Canadians need it, so our economy can grow, businesses can operate, industries can produce, and the government is efficiently funded through royalties and taxes from said economic activity. Our electricity and fuel resources are critical to everything we do. Ensuring Canadians have uninterrupted access to energy is not only crucial for our economy, but also for the security and safety of all our families and communities. Energy security is ideally achieved from domestic sources, so that Canada does not have to rely on foreign imports of oil and natural gas, for example.

Q. What is a good example of energy security?

A recent example of the importance of energy security is the early 2022 outbreak of the war in Eastern Europe. Many Western European countries, which had been importing vast quantities of their oil and natural gas from their geopolitical opponent, were immediately faced with significant security problems, as their reliance on an unreliable foreign energy source became a substantial issue for their security. What ensued were energy crises that led to the deindustrialization of nations like Germany, which once relied on abundant and affordable natural gas via pipelines from the east to maintain its manufacturing prowess. The energy crises that ensued, along with the associated economic fallout, have persisted to this day, as many of these countries continue to import vast quantities of oil and natural gas from their geopolitical adversaries.

Q. Is Canada energy secure?

Canada enjoys reliable access to the energy our families and businesses need, but we are still dependent on other countries for a significant portion of our energy needs. Eastern Canada, in particular, imports significant quantities of oil and natural gas from foreign sources, primarily the U.S., because of a lack of pipeline infrastructure from the west to the east. To achieve greater energy security, we should plan for increased local energy production and consumption through the development of domestic trade and energy infrastructure, such as pipelines, power lines, small modular nuclear reactors, hydroelectric facilities, and everything in between.

Q. What parts of Canada have energy security concerns?

Eastern Canada still imports significant amounts of crude oil, despite being the world’s third-largest oil reserve holder, which means families pay more for their energy, and Canadian dollars leave the country. A coast-to-coast energy corridor, which includes new oil and gas transmission lines, would boost economic activity here at home and secure our energy future for decades to come. This is just one example of the energy security concerns that Canadians face.

Q. Does Canada’s energy security depend on the United States?

Today, Eastern Canada’s energy security relies on oil and natural gas imports from the U.S. Canada and the U.S. have enjoyed a long and stable trade partnership of natural resources. However, the U.S. accounts for a large majority of Canada’s oil and natural gas exports, for example, and with Canada’s limited access to other markets, the U.S. has historically bought our energy at a significant discount.

Q. What actions should Canada take to become more energy secure?

With huge oil and gas reserves and other natural resources, as well as coastlines that access global markets, particularly Asia, where 70% of future energy demand growth is expected, Canada has immense opportunities to advance domestic and international energy security. Canada can take steps to ensure that all locally consumed energy is produced by Canadian companies within the country, and is effectively shipped to domestic markets using infrastructure entirely built within our borders. For example, the current pipelines that transmit western Canadian oil and natural gas liquids to eastern Canadian refiners in Ontario and Quebec traverse through the U.S. before re-entering the country through southern Ontario. This could be a cause for concern if Michigan is successful in shutting down Line 5, or if the trade disputes with the U.S. administration escalate further.

Q. Can Canada provide energy security to the world?

Yes. Canadian energy can anchor global supply with a reliable, trustworthy energy source, especially for conventional oil and natural gas into Asia’s energy-hungry markets, while adding billions of dollars to the national economy, creating countless jobs, and ushering in Indigenous economic reconciliation.

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SOURCES:

_{1 -}_{https://www.iea.org/reports/world-energy-outlook-2024}

_{2 –}_{https://corporate.exxonmobil.com/sustainability-and-reports/global-outlook}

_{3 -}_{https://www.electricity.ca/advocacy/electricity-is-essential-the-state-of-the-canadian-electricity-industry-2025/}

_{4 -}_{https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2022/market-snapshot-crude-oil-imports-declined-in-2021-while-refined-petroleum-product-imports-rose-modestly.html}

_{5 -}_{https://www.capp.ca/wp-content/uploads/2025/01/Canadian-Imports-of-US-Crude-Natural-Gas-and-Refined-Products.pdf}