Amid the conflict in the Middle East blocking the critical Strait of Hormuz, the global community is tapping into its oil reserves to address the supply disruption.
The International Energy Agency (IEA) announced on Wednesday its decision to release 400 million barrels from emergency reserves, marking its most extensive release ever in response to an unprecedented disruption, according to the IEA.
Questions have arisen about Canada’s lack of oil reserves compared to other G7 nations, as it stands as the sole country without a strategic reserve.
While Natural Resources Minister Tim Hodgson pledged Canada’s cooperation in bolstering global oil supply, Conservative Party Leader Pierre Poilievre criticized the government for the absence of reserves.
Poilievre emphasized during a heated exchange with the prime minister on Wednesday that Canada currently maintains no stockpiles.
Why does Canada lack a strategic reserve, and what steps can the country take to contribute to the global supply? Here’s what you should know.
Oil and gas prices are rapidly rising around the world amid the U.S.-Israel conflict with Iran. Andrew Chang explains the driving forces behind the surge and the challenges in predicting the oil market’s trajectory.
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?
As one of the 32 IEA member countries, Canada is part of the global organization and its reserves established in 1974 to manage energy crises, sparked by the Arab oil embargo at the time.
Member nations collectively hold over 1.2 billion barrels of public emergency oil stocks, with an additional 600 million barrels of industry stocks held under governmental obligations.
While the IEA mandates that members maintain reserves equivalent to 90 days of net imports, Canada is exempt due to being a net exporter.
Despite also being a net exporter, the U.S. maintains a strategic reserve. The U.S. is set to utilize about 174 million barrels from its reserves starting in the coming week.
While a significant portion of Canada’s oil is directed to the U.S., some from the Trans Mountain pipeline serves Asian markets, which are facing heightened demand due to the Strait of Hormuz closure.
What steps can Canada take?
Canadian industry analyst Rory Johnston, founder of Commodity Context, notes that while accessing global reserves will provide some relief, it won’t suffice to compensate for