From Phase-Out to Full Throttle: Canadian Oil Stocks Turn a New Leaf When Trudeau Resigns

Ding-dong, the witch is dead, grab your drills, get out of bed.

We’re only a week into the new year, and I’ll be the first to admit that Prime Minister Justin Trudeau’s resignation was not on my 2025 bingo card. 

After nine years in office, the wicked witch of the north is stepping down. 

If you’re like me, then you’ve probably been a little burned out over politics during the last year. But that’s not to say there weren’t signs this was coming. 

Last month, Trudeau’s finance minister and deputy prime minister quit due to disagreements over his economic policy. This was on top of losing a few Cabinet ministers and his own allies ready to put up a non-confidence vote against. 

Of course, the 23% approval rating didn’t help gain much popular support either. Perhaps his days really were numbered. 

And for some, his exit comes with a huge sigh of relief. 

You see, Trudeau’s resignation is going to have strong bullish repercussions in the Canadian oil patch — and we won’t be the only ones that’ll notice. 

Much like President Biden’s disdain for America’s oil and gas sector, one thing we can say with absolute certainty was that Trudeau hated the Canadian oil industry. 

As soon as he took office back in 2015, Trudeau banned oil tanker traffic off the northern coast of British Columbia. A year later, he officially killed Enbridge’s Northern Gateway project, 

It was also clear from Day One how he felt about the Canadian oilsands patch. In early 2017, he suggested that Canada should phase-out oilsands production. 

I know the veteran members of our investment community know how ridiculous that sounds. Not only is the oilsands area home to 99% of the country’s oil reserves, it's also roughly two-thirds of Canada’s oil supply.   

Never mind the fact that it’s a critically important source of crude for the United States. To put a little perspective on this, just keep in mind that the U.S. imports nearly four times more oil from Canada than it does ALL OF OPEC! 

In fact, Canada accounts for more than 60% of our total crude oil imports. That’s also not to mention that our oil imports from Canada have steadily increased since the early 1980s. 

Most people don’t realize that without that source of heavy crude from Canada, our refiners along the Gulf Coast would have to turn toward places like Venezuela; we can all at least agree that giving Maduro that kind of power would be an incredibly bad thing, right?

More recently, Canadian oil companies have had to deal with Trudeau’s emissions cap, which would force companies to cut emissions by 35% within the next five to seven years — effectively putting a cap on production.  

This would greatly hurt Canadian oil exports, which account for about 20% of the country’s trade. 

But enough of the doom and gloom, because the whole paradigm is changing with Trudeau’s exit. The reason why is because his likely successor is Pierre Poilievre, the leader of the Conservative party. 

Believe me, Pierre Poilievre is a horse of a different color. Those of you unfamiliar with the name can quickly understand that he’s the polar opposite of Trudeau. Here’s a lengthy interview he recently had with Jordan Peterson, which outlines a number of his positions. 

If he emerges as Canada’s next Prime Minister, we can fully expect to see rapid approvals for new refineries, LNG facilities, and nuclear plants. 

More importantly, he understands that Canadian oil companies have to sell their product to the U.S. at steep discounts. Not only does he recognize this, but he’ll provide quite a boost to the country’s oil industry. 

And with such a radical shift in the Canadian government’s approach to its energy policy, I have a feeling that we’re not the only ones to see that brighter days are ahead. 

It’s going to attract the attention of some of the most powerful investors in today’s market. 

I strongly recommend you take just a few minutes out of your day and see this one for yourself.