Canadian Natural Resources has delayed major mid- and long-term oil sands expansion projects until agreements with the Canadian federal and Alberta governments are finalized, CEO Scott Stauth said on Thursday.
The decision keeps the proposed C$650 million Jackfish expansion, the C$2.5 billion Pike 2 project, and the longer-term Jackpine mine expansion on hold despite earlier plans to begin engineering work this year.
Stauth said the company wants legally binding agreements in place before committing to new investments, stressing that all policy components must be aligned for the projects to move forward.
The pause comes after oil sands producers signed a non-binding memorandum of understanding with the federal and Alberta governments in July to advance the Pathways carbon capture and storage project aimed at reducing emissions.
Several key policy measures, including carbon pricing, financial support and permitting reforms, have yet to be enacted into law, creating uncertainty for future investments.
The announcement underscores the cautious approach being taken by Canada’s oil industry despite recent government efforts to encourage production growth and expand export infrastructure.
Canadian Natural also raised its 2026 production forecast for the second time this year after reporting stronger-than-expected second-quarter earnings, supported by record production levels and higher crude oil prices.