Enserva Report Highlights Canada's Strategic Shift in Energy Services
Calgary, Wednesday, 26 November 2025.
Enserva’s 2025-2026 report reveals Canada’s potential in global energy markets, driven by LNG growth and export diversification, despite current pricing and investment hurdles.
LNG and Export Diversification as Growth Catalysts
The Enserva report underscores the pivotal role of Liquefied Natural Gas (LNG) and export diversification in shaping Canada’s future in the global energy landscape. With global LNG consumption accelerating, largely driven by emerging economies’ energy needs, Canada stands poised to capitalize on this trend. The report highlights that Canada’s strategic positioning and resources could significantly enhance its role in meeting the rising global demand for natural gas. This growth trajectory, however, is tempered by current challenges in pricing and investment, which the industry must navigate to fully leverage these opportunities [1].
Economic Implications of Market Adjustments
Despite the promising outlook, Canada’s energy sector faces near-term economic hurdles. The report details a projected decline in upstream oil and gas capital spending, with expectations of a 5.6% decrease by the end of 2025 and a further 2.2% in 2026. These reductions are primarily due to fluctuating oil prices, which have led to a downturn in drilling activity. Notably, the number of wells drilled in 2025 is forecasted to fall by approximately 9%, impacting provinces like British Columbia, Alberta, and Saskatchewan. Each is expected to see declines of 16%, 7%, and 10%, respectively, before a potential rebound in 2026 [1].
Strategic Policy and Investment Opportunities
The report emphasizes the importance of strategic policy and investment to navigate the current landscape. It identifies the necessity for policy stability and infrastructure development as key factors that will determine Canada’s ability to compete effectively in global markets. The anticipated Alberta-Ottawa energy agreement could provide a framework for investment in oil and gas infrastructure, which is crucial for enhancing market access and ensuring energy security. Additionally, overcoming regulatory challenges, often referred to as the ‘nine bad laws,’ could unlock significant investment potential in the sector [3].
Risks and the Path Forward
Enserva’s report also highlights several risks that could impact the Canadian energy sector. These include Canada-U.S. trade tensions, the upcoming Canada-United States-Mexico Agreement (CUSMA) review in 2026, and potential natural gas egress constraints. Furthermore, increased global oil production poses a competitive challenge. Addressing these risks requires a concerted effort from policymakers and industry stakeholders to develop resilient strategies that can withstand external pressures while capitalizing on emerging opportunities [1].