Canada: Canadian Prime Minister Mark Carney says Canada is prepared to play a stronger role in the global energy market by increasing oil production, highlighting the country’s reputation as a stable and dependable exporter.
Carney made the remarks during a meeting with Norwegian Prime Minister Jonas Gahr Støre in Oslo on Saturday. The two leaders discussed strengthening cooperation in areas such as energy, Arctic security, space technology, and critical minerals.
Oil Supply Concerns Amid Middle East Conflict
Global oil markets have been facing uncertainty due to escalating tensions in the Middle East, particularly the ongoing conflict involving Iran. One of the biggest concerns for international energy markets is the disruption of shipping routes through the Strait of Hormuz, a narrow waterway through which roughly 20 percent of the world’s oil supply normally passes.
Because of these disruptions, energy-consuming nations have been looking for reliable suppliers to stabilize the market.
Carney emphasized that both Canada and Norway are considered low-risk producers of oil and natural gas, making them attractive partners for countries seeking stable energy sources.
International Energy Agency Response
Earlier this week, the International Energy Agency (IEA) announced a coordinated emergency measure involving 32 member countries, including Canada. The agency approved the release of about 400 million barrels of oil from global reserves, the largest coordinated release in the organization’s history.
Canada plans to contribute by increasing production levels. Officials say the country will boost output by approximately 23.6 million barrels, helping to stabilize supply in the medium term.
Unlike many oil-importing countries, Canada and Norway are not required to maintain large emergency oil reserves. Instead, their contribution to global supply comes primarily through increasing production and exports.
Bay du Nord Offshore Project
During his visit, Carney also held discussions with representatives from Equinor regarding the proposed Bay du Nord offshore oil project near Newfoundland and Labrador.
The project, estimated to cost about $14 billion, was approved by Canada in 2022. However, the company has not yet made a final investment decision. Equinor is expected to make that decision by 2027, with potential oil production beginning around 2031.
The prime minister described the project as promising and said Canada hopes it will move forward. Supporters argue that the development could generate economic growth and energy exports.
Environmental organizations in Canada, however, have raised concerns, saying the project could conflict with Canada’s long-term climate goals and its commitments to reduce fossil-fuel subsidies.
Wider Talks on Security and Economy
Carney’s trip to Norway also included meetings with international companies and officials to discuss cooperation in energy, shipping and infrastructure. Among those he met were representatives from global shipping giant Maersk and Iceland’s national energy company Landsvirkjun.
The visit also included observing NATO military exercises in northern Norway, highlighting growing cooperation on security issues in the Arctic region.
Economic Challenges at Home
While speaking to reporters, Carney acknowledged economic concerns in Canada after recent data showed the country lost around 84,000 jobs in February. He said the government is working on both short-term and long-term measures to strengthen the economy.
These include tax relief measures and increases to certain financial benefits, as well as major infrastructure projects such as new military bases and the proposed Mackenzie Valley Highway in the Northwest Territories.
Canada–Nordic Cooperation Expanding
Canada and Norway issued a joint statement after their talks, confirming plans to expand cooperation on critical minerals, security in outer space, and continued support for Ukraine in its war with Russia.
Both countries also agreed to host an international conference in Toronto later this year focused on securing the release of Ukrainian prisoners of war and civilians detained during the conflict.
Norwegian Prime Minister Støre described Canada as a close partner across the Atlantic and said relations between the two countries are growing stronger.
Carney is scheduled to meet with leaders from other Nordic nations — including Iceland, Denmark, Finland and Sweden — during the remainder of his visit.