The head of the International Energy Agency says the global energy crisis from the war in Iran will hit Canadians soon.
Fatih Birol, speaking with Energy Minister Tim Hodgson in Ottawa on Tuesday, said Canada has been insulated so far but that is about to change. "Maybe it’s not your daily issue here. But it will be your daily issue, soon," Birol said.
Hodgson pointed to agency modeling suggesting Canada’s allies are weeks away from shutting down operations due to energy shortages. He warned of additional price shocks if the conflict in Iran continues. While some interpreted his comments as signaling domestic price hikes, his office later clarified he was referring to allies.
The energy crisis has already lost 14 million barrels of oil per day-more than the 1973 and 1979 crises combined, according to Birol. Natural gas availability has also dropped more than when Russia cut off Europe in 2022. The Strait of Hormuz remains perilous for oil tankers, and experts say Iran may soon have to reduce or cease production from some wells.
Five major Canadian oilsands producers and clean energy groups separately criticized slow progress on an energy deal signed last year, which pairs a potential new oil pipeline to the West Coast with environmental measures.
Birol said the war will weaken global economic growth, affecting all countries, including Canada. Climate groups urged Prime Minister Mark Carney to scale up clean energy solutions, arguing that expanding oil exports would be a miscalculation.