Canada's Oil Producers Rake in Profits from Iran War, But Hold Back on New Investments

Canadian oil and gas producers are set to reap higher profits in 2026 due to the Iran war, which has disrupted global supplies and driven up prices. Brent crude and West Texas Intermediate have surged into the $90 to $100 a barrel range.

Executives from companies such as Cenovus Energy and Tamarack Valley Energy say their cash flows will increase significantly, but they do not plan to invest in new projects. Instead, they will channel the profits back to shareholders.

The executives cited uncertainty about how long the high prices will last and ongoing concerns about regulatory barriers in Canada as reasons for holding off on new investments.

Tourmaline Oil's vice president, Jamie Heard, said that while the company's cash flows are not yet expected to reach 2022 levels, they could creep close to that range. He added that the company will return the bulk of its profits to shareholders in the form of a special dividend.