OSLO — Prime Minister Mark Carney affirmed Canada’s role as a stable energy supplier Saturday, stating the country does not require a strategic oil reserve due to its position as a net exporter, as he and Norwegian Prime Minister Jonas Gahr Støre deepened bilateral ties amid ongoing disruptions to global oil markets caused by the war in the Middle East.
During a media appearance at the Holmenkollen Skifestival, Carney and Støre emphasized their nations’ reliability as low-risk producers of oil and natural gas. This message came as world oil markets react to the conflict, which has curtailed shipments through the Strait of Hormuz, a critical waterway for approximately one-fifth of global oil transport.
Canada has committed to increasing its oil production by 23.6 million barrels as part of a coordinated release of 400 million barrels agreed upon by the 32 member countries of the International Energy Agency (IEA) on Wednesday. “From Canada’s perspective, we are low-risk producers of oil,” Carney said. “We will continue to do so given that we are a safe, low-risk, low-cost, and increasingly low-carbon exporter.”
Unlike many IEA members, Canada and Norway, as net exporters, are not obligated to maintain oil reserves. Carney explained that the standard requirement is for importing nations to hold at least 90 days of reserves, while exporting countries contribute by increasing production. “The rules are you should have at least 90 days reserves for those importers,” he stated. “What we do is we provide oil to the global market.”
Carney also discussed the proposed Bay du Nord oil project, located approximately 500 kilometers off the coast of Newfoundland, during a meeting with Equinor, the Norwegian energy company developing the project. The $14 billion project received Canadian approval in 2022, but a final investment decision from Equinor is still pending, with an expected timeline of 2027 and potential first oil production in 2031. Carney described the project as “very attractive” and indicated Canada’s desire to observe it move forward, citing its potential for “very low-carbon oil in terms of production and transportation.”
The prime minister’s trip began Friday with a visit to NATO exercises in Bardufoss, northern Norway. Simultaneously, economic data released in Canada revealed a loss of 84,000 jobs in February. Carney acknowledged the impact of job losses on families but highlighted the government’s efforts to stimulate economic growth through measures like an income tax cut and an increase to the GST credit. He also pointed to long-term investments, including new military bases and the planned Mackenzie Valley Highway in Yellowknife, as evidence of the government’s commitment to economic development.
Carney also held meetings with Landsvirkjun, Iceland’s national energy company, and Maersk, the international shipping giant responsible for roughly 15 percent of global container traffic. A newly established Major Projects Office is intended to expedite approvals for large-scale projects, though no approvals have yet been issued.
Following a working dinner at the Norwegian prime minister’s residence, Carney and Støre released a joint statement outlining a commitment to enhanced cooperation on critical minerals, outer space security, and support for Ukraine. The two nations also agreed to co-host a ministerial conference in Toronto at the end of September, focused on the return of Ukrainian prisoners of war, unlawfully detained civilians, and children forcibly transferred to Russia.
During a visit to Holmenkollen, Carney also met with King Harald V and Queen Sonja of Norway, though details of that meeting were not disclosed. Norwegian Prime Minister Støre described the relationship between Canada and Norway as strong, stating that Carney had “made a real new boost in that relationship across the Atlantic” and calling Canada an “honorary Nordic” nation.
Carney and Støre are scheduled to meet with leaders from Iceland, Denmark, Finland, and Sweden – collectively known as the Nordic Five – on Sunday.
