Canada's oil boom breaks records as new pipelines open Asian markets

Canada's oil industry is experiencing a major boom as production hits record levels and new export routes open. With prices surging due to global tensions, producers are earning billions more while pushing for further expansion into Asian markets. Two key pipeline projects have now been approved to help reduce reliance on US buyers, where Canadian crude often sells at a discount.

Oil output in Canada reached an all-time high of 5.19 million barrels per day in early 2025. This growth comes as shares of the country's four largest producers climb toward decade highs, with gains of 40 per cent or more since 2026 began. The surge follows a sharp rise in oil prices, with the US benchmark, West Texas Intermediate, jumping from $67.02 in late February to over $98 by Friday. Every $10 increase in prices this year has added an estimated C$25–30bn in extra revenue for Canadian firms.

For years, Canada has sent over 90 per cent of its crude to the US, often at lower prices due to pipeline bottlenecks and refining limits. But the completion of the Trans Mountain Expansion pipeline in May 2024 has allowed producers to ramp up shipments to Asia. A second project, the Northern Gateway Pipeline Revival, received government approval in December 2025, further opening access to western ports. Industry leaders argue that more infrastructure is needed. François Poirier, CEO of TC Energy, has called for regulatory reforms to speed up pipeline construction. Research suggests that expanding export capacity by 1.5 million barrels per day could add an average of C$31.4bn annually to Canada's economy over the next ten years.

The two newly approved pipelines will help Canada diversify its oil exports beyond North America. With production at record levels and prices remaining high, the industry's push for further expansion could reshape the country's energy trade. Analysts expect continued growth as long as global demand and geopolitical tensions keep prices elevated.