Canada's Fossil Fuel Reliance Remains Strong Amid Global Price Spikes

The conflict in the Middle East has led to global price spikes for crude oil and liquefied natural gas, affecting Canada's energy markets. The federal government and Alberta have agreed to develop a new pipeline to the west coast as part of a plan to expand Canadian oil production.

In an effort to move away from fossil fuels, the Carney government has pledged to double national electricity production by 2050. However, as of 2025, fossil fuels still dominate Canada's energy supply, making up over three-quarters of primary energy consumption.

A report from the Fraser Institute suggests that the transition to cleaner energy may not be as rapid as expected. According to Natural Resources Canada, oil constitutes one-third of domestic energy supply, followed by natural gas (41%), hydro-electricity (11%), and nuclear power (8%). Coal supplies 2% of Canada's primary energy.