CALGARY, March 11 - Canada is exploring ways to temporarily boost its crude oil output to contribute to global efforts to stabilize energy markets amid the U.S.-Israeli war with Iran, Natural Resources Minister Tim Hodgson said on Wednesday.
Hodgson told reporters in Ottawa that the federal government has been in discussions with Canadian oil producers about delaying planned maintenance at oil sands operations. The intention is to raise short-term production by keeping facilities online longer than scheduled, rather than implementing maintenance shutdowns that would lower output.
In addition, Ottawa has asked Canadian refineries that currently process imported crude to increase their use of domestic oil. Hodgson said this shift would free up barrels in other regions, effectively redirecting Canadian production where it is most needed on global markets.
The measures come as the International Energy Agency agreed to release 400 million barrels of oil on Wednesday - the largest coordinated release in the agency's history - in a bid to rein in crude prices that have risen sharply due to supply shocks from the U.S.-Israeli war with Iran.
Canada is the world's fourth-largest oil producer and participates as a member of the IEA. However, unlike some countries, Canada does not maintain its own strategic petroleum reserve because it is a net exporter of oil, a structural detail Hodgson referenced in the context of the country's policy options.
Context and operational levers
Officials are focusing on two immediate operational levers: postponement of maintenance at oil sands facilities and a reallocation of refinery feedstocks toward domestic crude. Both actions are framed as temporary steps intended to increase the availability of Canadian barrels on international markets.
Hodgson's statements indicate Ottawa is coordinating with industry stakeholders rather than mandating production changes. The government emphasis is on voluntary adjustments by producers and refiners to help shore up supply where global pressures have pushed prices higher.
What remains unclear
The statements outline options under consideration and requests being made to industry partners, but they do not quantify how much additional crude might become available or how long any temporary measures would remain in place. The effectiveness of these steps in moderating global prices was not specified.