Amid the conflict in the Middle East disrupting the crucial Strait of Hormuz, leading to its closure, the global community is utilizing its oil reserves to address the supply shortage.
Recently, the International Energy Agency (IEA) made a significant decision to release 400 million barrels from its emergency reserves, marking its largest release ever, in response to an unprecedented disruption, as stated by the IEA.
Attention is now drawn to Canada’s absence of oil reserves, making it the sole G7 country without a strategic reserve.
While Natural Resources Minister Tim Hodgson expressed Canada’s commitment to contributing to the global oil supply, Conservative Party Leader Pierre Poilievre criticized the government for the lack of reserves.
During a heated exchange with the prime minister, Poilievre highlighted that Canada’s stockpiles are at zero.
So, why does Canada lack a strategic reserve, and what steps can the country take to support the global supply? Here’s what you should know.
As oil and gas prices surge globally due to the U.S.-Israel conflict with Iran, Andrew Chang delves into the driving factors behind the surge and the complexities of predicting oil market movements.
CORRECTION (March 11, 2026): At 2:36 in this video, the graphic incorrectly states Iran holds 298 billion barrels of oil reserves. The correct number is 209 billion.
Images provided by The Canadian Press, Reuters and Getty Images.
Why the absence of reserves?
Canada is part of the IEA, comprising 32 member countries. Established in 1974 in response to the energy crisis triggered by the Arab oil embargo, the IEA and its reserves aim to coordinate a global energy crisis response.
Member countries collectively maintain over 1.2 billion barrels of public emergency oil stocks and an additional 600 million barrels of industry stocks under government obligation.
While the IEA mandates that members have reserves covering 90 days of net imports, Canada is exempt due to being a net exporter.
Although the U.S. is also a net exporter, it maintains a strategic reserve. The U.S. is set to release approximately 174 million barrels from its reserves starting next week.
While a considerable portion of Canada’s oil is directed to the U.S., the Trans Mountain pipeline supplies some to Asian markets, notably affected by the Strait of Hormuz closure.
What’s the way forward for Canada?
Rory Johnston, a Canadian industry analyst and Commodity Context founder, notes that while tapping into global reserves aids in boosting supply,