Ukraine war: Canada to increase oil, gas exports amid push to displace Russia

According to Ben Brunnen of the Canadian Association of Petroleum Producers, a short-term increase in the production risks the country's industry.  

Canada stated on Thursday that it would increase oil exports by around 5 per cent to address supply shortages among allies who have shunned Russian energy since Moscow invaded Ukraine.

Resources Minister Jonathan Wilkinson, in a statement, stated that the European allies and friends are counting on Canada and others to step up. They ask for Canada's assistance in weaning themselves off Russian oil and gas in the short term. 

He added that Canada is uniquely positioned to assist and that Ottawa will continue to engage with its international allies to support global energy markets.

Wilkinson was in Paris on Thursday for an International Energy Agency (IEA) ministerial meeting.

He stated that in response to the requests for assistance from allies to address supply shortages due to the conflict in Ukraine, the Canadian industry could incrementally advance its oil and gas exports in 2022 by up to 300,000 barrels per day to displace Russian oil and gas. 

While talking to the AFP, Ben Brunnen of the Canadian Association of Petroleum Producers stated that a short-term increase in production carries risk for the country's industry. They don't have sufficient market egress to really make a substantial difference.

Even though Canada cannot control the particular oil destination, once it is on the market, it helps enhance supply, which will benefit European friends, a government source stated. The world's fourth-largest oil producer is Canada. 

Last week the IEA asked governments to urgently implement measures to slash global oil consumption following supply fears stemming from Russia's invasion.

Fuel costs have risen substantially due to the conflict in Ukraine, prompting major economies such as the US and Canada to impose sanctions on Russia by prohibiting the import of its oil.

Brent North Sea crude, the major international benchmark, dipped below $120 per barrel on Thursday, trading at roughly $116 per barrel.

Prices had risen in recent days, partly due to speculators' expectations that the European Union will impose sanctions on Russian oil soon.