Canadian Oil & Gas Is Booming
Expanding infrastructure, big wells, and rising investment could drive substantial upside for these Canadian stocks.
The Canadian oil and gas industry is booming. Average Canadian production through the first four months of 2026 reaching record levels for both crude oil and natural gas:
Despite the recent pullback in commodity prices, Canadian drilling activity has increased substantially. The Canadian drilling rig count averaged its highest level in Q2 in over a decade:
Production and drilling activity have been rising because well economics are compelling - and are improving in a number of areas. The graphs below, sourced from two large Canadian operators, Canadian Natural Resources CNQ 0.00%↑ and Tourmaline Oil illustrate the improving well economics in two of these areas:
The evolving Canadian oil and gas story receives far less attention than U.S. shale, but it’s one I’ve been involved in professionally for more than a decade as an investor. I also served as chairman of the board of a Canadian E&P for almost two years, which I helped to turn around and then sold at a premium.
With activity now accelerating and interest increasing, it is timely to share my thoughts on this trend, as well as my favorite Canadian oil & gas stocks that stand to benefit from the broader increase in production, drilling activity, and capital spending.
These Canadian names make up a large portion of the Bison Insights composite index, which has increased substantially more than the broader energy market since Bison Insights launched last year. These companies are still overlooked, and have much more room to run in my view:
In this article, I’ll review the broader shift of capital into Canadian oil and gas and some of the companies positioned to be major beneficiaries.
Disclaimer: This is for informational and educational purposes only. This is not an offer, solicitation, or investment recommendation. Please consult an advisor and do your own diligence. Investments incur risk of loss. Past performance is not indicative of future results.
