What Happens When 20% of the World’s Energy Supply Disappears Overnight?

On February 28, 2026, as military operations commenced between the US, Israel, and Iran, the closing of a narrow stretch of water in the Middle East sent energy prices and inflationary expectations around the world exponentially higher.

The Strait of Hormuz, through which roughly 20% of the world’s oil and LNG flows, sent Brent crude past $100 a barrel in a matter of weeks, and left countries around the world scrambling for energy security.

Europe, a region reliant on natural gas from the Middle East, saw the price of TTF (Europe’s natural gas benchmark) rise by more than 50% on March 6th, immediately raising European wholesale electricity pricing and hurting businesses and consumers across the continent.

However, Europe isn’t the only place feeling the pressure. India, which sources roughly 55% of its LNG and 41% of its oil through the strait, saw LPG imports almost halve overnight leaving millions of residents unable to access vital resources such as heating and cooking gas. Drastic LNG prices changes have even led some countries, like the Philippines, to declare a state of national emergency.

Evidently, the world had focused much of an entire energy system around a single chokepoint in the Middle East, and few countries have a workable backup plan. Now, as global economies continue to look for energy alternatives, Canada has the ability to emerge as the answer they are looking for.

Canada’s LNG opportunity

Canada holds two of the most significant energy reserves in the planet: western Canada’s oil sands and natural gas basins. We are already the fourth largest producer of oil on the planet, and unlike major producers in the Persian gulf, our energy doesn’t travel through unstable chokepoints. Instead, Canada has 230,000 kilometres of coastline to ship oil and gas to customers around the world.

Getting made-in-Canada oil to coastal shipping routes via pipelines (both new ones and expansions of existing ones) is a priority for the Canadian energy sector, there’s no doubt about it. But equally important is expanding Canada’s LNG export infrastructure.

In June 2025, Canada shipped its first liquefied natural gas cargo from LNG Canada’s facility in Kitimat, British Columbia. The facility, which represents the largest private sector investment in Canadian history, is now operating close to its full capacity of 14 million metric tonnes per year, with shipments heading directly to Japan, South Korea, and the Philippines.

What makes Canada’s position even more compelling is the geography. Kitimat on the Pacific coast cuts shipment times to Asia in half compared to US Gulf Coast exporters, ultimately reducing the journey from 20 days to 10. This is an opportunity that Canada must take immediately, as Asian countries scramble for new natural gas partners. As Gary Mar, CEO of the Canada West Foundation, wrote in the Financial Post: “We mine, we extract, and we have commodities the world needs. We should embrace that role.”

What’s more, there’s also tons of potential on Canada’s east coast for shipment of LNG across the Atlantic Ocean.

What This Means for Young Canadians

This isn’t just a geopolitical story. For young Canadians, it’s a career opportunity.

Over 50,000 Canadians directly contributed to building LNG Canada Phase 1, with another 25,000 working on the Coastal GasLink pipeline. As the sector grows to meet growing global demand, opportunities across trades, engineering, business and many more will only accelerate.

As a third-year student at Western University, I’ve noticed firsthand how many of my peers are starting to pay attention to the energy sector headlines, not just as a policy debate, but as a place to actually build a strong career.

The world is looking for a reliable and stable energy partner. Canada checks every box. Now it’s time to act like it.