Canada’s oil industry is positioned to remain resilient amid falling oil prices, with Canadian oil producers outlasting their U.S. counterparts, according to Eric Nuttall, senior portfolio manager at Ninepoint Partners.
Nuttall highlighted that Canadian oil companies are in a stronger financial position than U.S. shale producers due to years of debt reduction, resulting in stronger balance sheets and business models. “U.S. shale is now in the death zone,” Nuttall said in a recent interview. “If the market has to rebalance by losing short-cycle supply, Canadian companies will do just fine.”
With the ongoing trade tensions between Canada and the U.S., Nuttall emphasized that Canada is seen as a reliable and cost-effective energy supplier. He added that U.S. shale growth is expected to decline this year, particularly as the current oil price impacts production.
Nuttall also noted the global implications of U.S. tariffs on liquefied natural gas (LNG) and the uncertainty surrounding their duration, which could affect both demand and global oil markets.
Canada’s position in the energy market is further strengthened by its perception as a safe, reliable energy supplier, increasing its chances of success in securing energy contracts amid global competition.
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