What to Know About Canadian Energy Stocks for 2025

There is a lot to consider among energy stocks heading into 2025, so let’s look at some considerations and stocks to watch.

| More on:
oil pump jack under night sky

Source: Getty Images

As we approach 2025, Canadian energy stocks are once again in the spotlight, navigating a mix of global economic trends, political disruptions, and shifting oil prices. Investors who follow this sector know it’s a lot like the weather — sometimes unpredictable, often volatile, but always worth preparing for.

The recent resurgence of Donald Trump to the U.S. presidency has injected a dose of uncertainty into the markets, especially for Canada. Trump’s previous term featured a staunch “America First” energy policy, bolstering U.S. oil production and causing friction with Canada — its largest energy trading partner.

His administration’s withdrawal from climate initiatives and focus on fossil fuels could prove a double-edged sword for Canadian producers. While global oil prices might see short-term support, increased U.S. supply may put downward pressure on markets again. Add in the risk of tariffs on Canadian oil imports, as Trump floated a 25% tariff previously, and the energy sector is treading cautiously into the new year.

Recent moves

Oil prices, after a rollercoaster year, are showing some resilience as of late. Global demand has remained strong, particularly in developing economies. Supply concerns, like the Organization for Petroleum Exporting Countries (OPEC)+ production cuts, have kept prices relatively buoyant. Canada, rich in oil sands and natural gas reserves, stands to benefit. Yet its relationship with its southern neighbour remains a critical factor.

Energy infrastructure, specifically pipelines, has always been a hot-button issue. And Canadian producers are finally seeing progress on this front. The Trans Mountain Pipeline expansion, a major project years in the making, is set to provide critical capacity for oil exports — particularly to markets beyond the United States. That’s a strategic win for companies looking to diversify their customer base.

Stocks to consider

Amid these developments, Canadian energy giants are taking proactive measures to weather geopolitical uncertainty and capitalize on emerging opportunities. Suncor Energy (TSX:SU), one of Canada’s most prominent oil sands producers, has been sharpening its focus on efficiency and production growth. The energy stock recently released its production forecast for 2025, targeting outputs between 810,000 to 840,000 barrels per day — a notable increase from current levels.

Recent earnings have reflected this positive momentum, with Suncor surpassing analyst expectations thanks to operational improvements and cost discipline. Investors have taken notice, and the energy stock’s long-term outlook remains solid, bolstered by its substantial oil sands reserves and improving cash flow.

Canadian Natural Resources (TSX:CNQ) is another energy stock to consider heading into 2025. CNQ is renowned for its vast oil and natural gas reserves. Its integrated operations also give it an edge in controlling costs. Over the past decade, the energy stock demonstrated an impressive ability to navigate market downturns. Thanks to its efficient production practices and disciplined financial management.

CNQ’s recent performance has been robust, with earnings reflecting strong commodity prices and growing output. Looking ahead, the energy stock’s commitment to technological innovation and environmental sustainability, particularly in reducing emissions, makes it a forward-thinking choice, especially for investors who are keeping an eye on long-term energy trends.

Foolish takeaway

For investors, the opportunities are compelling. Suncor offers growth potential through its production expansion plans and improving operational efficiency. CNQ, with its massive reserves and strong balance sheet, remains a standout for those looking for both growth and value. As the energy transition continues to gain momentum globally, Canadian companies are positioning themselves not just as oil and gas producers but as leaders in responsible energy development.

Heading into 2025, the Canadian energy sector will remain a space to watch closely. The stakes are high, with oil prices, U.S. policies, and global trade dynamics all playing pivotal roles. Yet, for investors willing to look past the headlines and focus on fundamentals, companies like Suncor and CNQ offer a compelling mix of growth, resilience, and reliability. Whether oil prices soar or stumble, these energy stocks are preparing for the long haul. And Canadian investors might just find themselves along for the rewarding ride.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources. The Motley Fool has a disclosure policy.

More on Energy Stocks

oil pump jack under night sky
Energy Stocks

Better Energy Stock: Brookfield Renewable or Northland Power?

Renewable stocks have a strong outlook, but which of these two are the best to buy?

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Energy Stocks

Where Will Suncor Stock Be in 3 Years?

Suncor continues to drive operational efficiencies and value. Expect this momentum to drive Suncor stock higher.

Read more »

oil and natural gas
Energy Stocks

Outlook for Canadian Natural Resources Stock in 2025

We can expect more of the same for Canadian Natural Resources stock in 2025: strong production, returns, and shareholder value…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

What to Know About Canadian Energy Stocks in 2025

Energy stocks like Canadian Natural Resources are well-positioned to benefit from strong energy markets in 2025.

Read more »

data analyze research
Energy Stocks

Enbridge Stock Has a Nice Yield, But This Dividend Stock Looks Safer

Don't be fooled by a pretty dividend yield. Dig deeper to find the real golden goose.

Read more »

Oil industry worker works in oilfield
Energy Stocks

Better Energy Stock: Suncor vs Canadian Natural Resources?

Investors are wondering if Suncor (TSX:SU) or Canadian Natural Resources (TSX:CNQ) are undervalued and good to buy for a TFSA…

Read more »

dividends can compound over time
Energy Stocks

3 No-Brainer Energy Stocks to Buy Right Now for Less Than $500

Energy stocks offer returns, dividends, and more. But which offers the best long-term buy?

Read more »

3 colorful arrows racing straight up on a black background.
Energy Stocks

A Canadian Energy Stock Poised for Big Growth in 2025

The energy sector has faced a lot of changes this new year, so is this energy stock going to sink…

Read more »