Canadian Prime Minister Mark Carney said he is unconcerned about the impact of rising Venezuelan oil production on Canada’s energy sector.
Speaking in Paris, Carney said Canadian oil remains competitive because it is low risk, low cost and low carbon.
He welcomed the US seizure of Venezuelan leader Nicolás Maduro, saying it opens the door to democratic change.
Canada’s oil sector has faced uncertainty amid concerns the US could shift supply towards Venezuela.
President Donald Trump has said US energy firms could rapidly expand operations in Venezuela.
Trump said increased Venezuelan output would help keep oil prices low in the United States.
Canada holds around 10% of global oil reserves, compared with Venezuela’s estimated 17%.
Canadian energy stocks dipped following developments in Venezuela.
Carney said higher Venezuelan output would not undermine Canada’s oil producers.
He stressed the need to diversify exports, particularly towards Asian markets.
Nearly all Canadian oil exports currently go to the United States, valued at about $100bn in 2023.
Analysts said instability in Venezuela is likely to deter investment in the near term.
Oil pundits may be getting way ahead of themselves.
Derek Holt said.
Canada is pursuing a proposed pipeline to the Pacific, though political and regulatory hurdles remain.
Opposition leader Pierre Poilievre has urged rapid approval of new export infrastructure.
Analysts said Canadian oil remains attractive due to reliability and political stability.