Global instability in the Middle East has reinforced Canada’s position as a reliable source of oil and natural gas, giving the country a strategic advantage in world energy markets, according to a researcher at the Montreal Economic Institute.Gabriel Giguère, senior policy analyst at the MEI, says recent crises — from the conflict in Ukraine to American and Israeli strikes on Iran — have strengthened the interest of international partners in Canadian energy. “The reliability and stability of Canada as an energy producer make it a partner of choice for our allies in Europe and Asia,” he said.The closure of the Strait of Hormuz and the broader Middle East conflict underscore the vulnerability of global energy supply to geopolitical tensions. European liquefied natural gas prices have surged 70% since Friday, while crude oil has risen roughly ten dollars per barrel, reflecting market sensitivity to events in the region.An MEI Economic Note published in February highlighted Quebec’s strategic advantages in liquefied natural gas. The Marinvest project in Baie-Comeau could help supply Europe, which continues to seek alternatives to Russian gas. Norway, which provided a third of European gas imports in 2024, is projected to see production drop 28% by 2035. .At the same time, the International Energy Agency forecasts global demand for natural gas to rise about 30% by 2050, creating opportunities for new suppliers like Canada.Quebec also benefits from shorter transport routes. LNG shipments from Baie-Comeau to Dunkirk take roughly eight days, compared with fourteen days from the Gulf of Mexico and more than seventeen days from Qatar, offering Canadian exporters a significant logistical and cost advantage.On the West Coast, a new memorandum of understanding between Ottawa and Alberta on pipeline construction could diversify Canadian energy exports to Asia, reducing dependence on the U.S. market and providing more stable supply options.“Whether through the development of LNG to Europe or through better access to Asian markets for our oil, Canada has to stop limiting its energy potential,” said Giguère. “In a world rife with geopolitical instability, we need to get out of our own way and finally give ourselves the means to export our energy where it’s needed.”
