Paris, 07 January (H.S.): Prime Minister Mark Carney has reaffirmed that Canada’s oil sector remains resilient and competitive, even as Venezuela prepares to ramp up oil production following the US-led seizure of President Nicolás Maduro.

Speaking at a press conference in Paris, Carney emphasized that Canadian oil is “low risk, low cost, and low carbon,” positioning it favorably in the global energy market despite the looming prospect of increased Venezuelan output.

The US move to capture Maduro and take control of Venezuela’s oil sector has sparked concerns in Canada about potential threats to its oil exports, particularly to the United States, which receives nearly 97% of Canada’s oil shipments.

President Donald Trump has signaled that American oil companies could be “up and running” in Venezuela within 18 months, potentially boosting global supply and lowering oil prices.

However, Carney stressed that Canada’s oil enjoys unique advantages, including stable governance, lower production risks, and a smaller carbon footprint, making it attractive to buyers even in a more competitive market.

Diversification and Pipeline Ambitions

In response to the shifting landscape, Canada is accelerating plans to diversify its export markets, particularly through a proposed pipeline to the Pacific coast. This project, which would connect Alberta’s oil sands to Asian buyers, aims to reduce Canada’s reliance on the US market and secure long-term competitiveness.

The federal government recently signed a memorandum of understanding with Alberta to advance the pipeline, though the project faces opposition from British Columbia and Indigenous groups.

Conservative opposition leader Pierre Poilievre has urged Carney to expedite approval of the pipeline, warning that recent US actions have “transformed the global energy dynamics” and could jeopardize Canada’s leverage in trade negotiations.

Meanwhile, experts note that while Venezuela’s oil reserves are vast, a significant revival would require substantial investment and political stability—conditions that remain uncertain in the near term.

Market Reactions and Outlook

Canadian energy stocks dipped following news of Maduro’s ouster, but analysts believe the impact on Canada’s oil sector will be limited for now. The country’s oil sands continue to demonstrate durability, with production gains expected in 2026 and further expansion projects on the horizon.

Carney remains confident that Canada’s oil will remain competitive, even if Venezuela’s output rises, due to its reliability and lower risk profile.

Hindusthan Samachar / Jun Sarkar