Canada's oil and gas industry is preparing for increased production, higher spending and stronger demand in 2027, according to a new survey showing growing optimism among energy executives and institutional investors.The fall 2026 ATB Cormark Capital Markets Energy Sector Survey found 84% of oil and gas exploration and production executives and 81% of energy services executives reported improving business outlooks over the past three months.The optimism is expected to carry into next year, with 96% of exploration and production companies anticipating increased production and 90% of energy services executives expecting higher activity levels in 2027.The survey suggests Canadian oil and gas activity and exploration and development spending could increase between 5% and 10% next year.Oil producers expect to increase production by approximately 10%, while natural gas producers anticipate growth of about 5%.The positive outlook comes despite expectations that crude oil prices could decline into the US$65 to US$75 per barrel range.More than half of exploration and production executives, 56%, expect to increase exploration and development spending in 2027.Meanwhile, 88% of those executives anticipate their business outlook will improve over the next six months, while 81% of energy services companies expect activity levels to increase during the same period.The survey also found growing confidence among institutional investors in Canadian energy companies.A total of 78% believe Canadian energy stocks are undervalued, while 63% expect energy equities to outperform the broader market over the next year.Another 76% reported becoming more optimistic about the energy sector during the past six months..The improving outlook is also expected to benefit energy services companies through higher prices and stronger profit margins.For the first time since spring 2022, more energy services executives reported excess demand for their services than excess capacity, suggesting tightening conditions across the industry.Federal energy policies remain the industry's leading concern, although the survey found executives are becoming less worried about Ottawa's approach to energy development.Respondents expressed cautious optimism about federal initiatives intended to expand Canada's energy sector, particularly major pipeline and liquefied natural gas projects.A strong majority expect positive final spending decisions on several major infrastructure proposals, including Pacific Link/Pathways, Prairie Connector and Ksi Lisims.Together, the projects could add at least 1.6 million barrels per day of crude oil transportation capacity and 1.6 billion cubic feet per day of LNG export capacity.A potential second phase of LNG Canada could add another 1.8 billion cubic feet per day of export capacity.However, respondents were less confident about the proposed Northern Shield Energy Corridor, with many doubting the project will be constructed.The survey also revealed concerns about the cost of major decarbonization projects.On balance, respondents believe large emissions-reduction initiatives, including Pathways, could harm the Canadian energy industry's long-term competitiveness.Global geopolitical developments are also influencing expectations for Canada's oil and gas sector..The ongoing war in the Middle East has raised concerns about international energy supplies, with 53% of respondents who expressed an opinion expecting crude oil exports from the region to remain below prewar levels through 2027.Another 72% believe global crude oil supply and demand will remain tighter over the long term than they expected before the conflict.The disruption is also making Canadian energy companies more attractive to institutional investors.According to the survey, 79% of institutional investors said restrictions on Middle Eastern crude oil and LNG exports have made them more likely to put money into Canadian energy companies.The findings suggest Canadian producers could benefit from international supply constraints as buyers seek alternative sources of reliable oil and natural gas.ATB Cormark Capital Markets conducted the survey between September 14 and September 28, 2026.Responses were collected from executives representing 27 exploration and production companies, 22 energy services companies and 42 institutional investors.The semi-annual survey measures industry expectations for production, spending, commodity prices, government policy and future energy development.
