Surging crude prices and supply risks heighten urgency for Canadian energy investment push
Small business leaders are intensifying calls for Canada to accelerate domestic energy development, warning that heightened geopolitical tensions and volatile global oil markets are amplifying cost pressures and economic uncertainty.
New data from the Canadian Federation of Independent Business (CFIB) shows overwhelming support among entrepreneurs for expanding the country’s energy capacity. Nine in 10 respondents said boosting production and infrastructure should be prioritised to help ensure reliable supply and mitigate price volatility.
The concern comes amid renewed turmoil in international energy markets. Oil prices have remained above US$100 a barrel as investors grapple with mixed signals from global equities and ongoing geopolitical risks.
More broadly, the sustained surge in crude prices reflects supply disruptions linked to escalating conflict in key producing regions. Prices have climbed sharply during the crisis, fuelling inflation fears and contributing to uneven performance across global stock markets.
US energy producers have warned the Trump administration that the growing global energy crisis is likely to worsen. Asian nations are planning to release strategic reserves and European and North American countries are poised to do so if and when required.
But for small firms, higher fuel costs continue to ripple through supply chains, squeezing margins and complicating business planning.
CFIB president Dan Kelly cautioned that price spikes are particularly difficult for smaller enterprises to absorb. “When fuel costs rise, the entire supply chain feels it, and there aren’t many small business owners who can absorb a prolonged spike in gas prices,” he said. “Governments need to make energy infrastructure a priority and get shovels in the ground as soon as possible.”
About two-thirds of businesses reported rising energy bills over the past year, underscoring the growing financial strain. Industry advocates argue that strengthening domestic production and transportation networks could help stabilise prices while improving economic resilience during periods of global upheaval.
Analysts also note that prolonged disruptions to major shipping routes or oil facilities could keep energy markets volatile, raising the risk of sustained inflation and slower growth worldwide. Such dynamics reinforce the case for investment in local supply capacity, particularly for economies heavily exposed to imported energy.
Business groups say decisive policy action aimed at improving energy security could help buffer Canadian firms from external shocks — a factor they view as critical to supporting long-term competitiveness and growth.
