Government of Canada
2005/68
September 2, 2005

Canada Contributes to International Initiative to Stabilize Oil Supply and Market Conditions

OTTAWA — The Government of Canada is pledging its support through the International Energy Agency (IEA) in response to oil supply shortages in the United States. The shortages are a result of damage to oil refineries and disruption in production caused by Hurricane Katrina.

The IEA decision to initiate coordinated emergency measures is intended to stabilize supply internationally, ease the supply problem in the United States and, hopefully, stabilize market conditions worldwide, including prices.

"It is important for Canada and other members of the IEA to show solidarity at this time of need," said the Honourable Anne McLellan, Deputy Prime Minister and Minister of Public Safety and Emergency Preparedness. "We can contribute to this international effort without affecting the security of our domestic supply of oil and gas."

"As a major energy producer, Canada has the ability, and the obligation, to be a part of this important effort," said the Honourable R. John Efford, Minister of Natural Resources Canada. "Canada will continue to work with the IEA secretariat and other members to take action. We are working with the provinces and industry to ensure that producing, refining and transportation capacity is fully exploited. Canadians are asked to exercise judgment in reducing the use of oil and gas at this time."

Under the IEA plan agreed to today, member countries contribute oil to the global market in proportion to their share of IEA demand. Canada's share of the group response is 4.6 percent, or 91,000 barrels of crude oil per day, which represents 4.9 percent of Canada's daily demand.

The IEA was created in 1974 by industrialized countries, including Canada and the United States, as a response to the need for international cooperation to reduce the impact of oil supply disruptions.

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