Canadian Natural Shelves Oil Sands Expansion Plans Amid Policy Reforms

Canadian Natural Resources has put its mid- to long-term oil sands expansion projects on hold until a memorandum of understanding with the Canadian and Alberta governments is finalized in binding legal agreements.

The company's CEO, Scott Stauth, made this announcement during a conference call on Thursday. The pause affects the approximately C$650 million, 30,000-barrel-per-day Jackfish project, its approximately C$2.5 billion, 70,000-bpd Pike 2 project, and longer-term projects like the proposed 150,000-bpd Jackpine mine expansion.

Early engineering work for these projects had been scheduled for this year, according to a 2025 investor presentation. However, Stauth emphasized that it's crucial to get the details of the agreement right, stating 'It's extremely important that we get this right.'

The news comes as Canadian oil producers are not rushing to increase output despite large-scale policy reforms promised by the federal and Alberta governments.