Canadian oil and gas leaders are operating in an environment shaped by geopolitical uncertainty, regulatory change, rising energy demand, and rapid technological advancement. Yet despite these pressures, confidence across the sector remains high.

According to KPMG’s 2025 Global Energy, Natural Resources and Chemicals CEO Outlook, 84 percent of Energy and Natural Resource (ENR) CEOs are confident in mid‑term industry growth, a notable increase from the prior year. For Canada’s oil and gas sector, this optimism reflects an active understanding of the industry’s ongoing role in delivering energy security, supporting economic growth, and advancing the broader energy transition.

Balancing resilience with disciplined growth

Canada’s oil and gas industry is navigating a multi‑speed transition. Investment in renewables and electrification continues to accelerate, even as demand for hydrocarbons remains strong. In this environment, the CEO Outlook identifies supply chain resilience as the top short‑term challenge shaping executive decision‑making.

For Canadian producers, midstream operators, and service providers, this has sharpened focus on operational reliability, cost control, and long‑term asset planning. With capital discipline firmly in place and regulatory expectations continuing to evolve, leaders are prioritizing investments that protect value across the full value chain — from production and processing to transportation and export infrastructure.

Mergers and acquisitions also remain part of the growth equation, though the nature of activity is changing. Fewer CEOs anticipate large, transformational deals. Instead, 55 percent expect moderate M&A activity over the next three years. Signaling a preference for targeted transactions that strengthen portfolios, enhance digital capability, or improve efficiency and scale while managing risk.

AI shifts from experimentation to execution

Artificial intelligence has rapidly shifted from experimentation to execution across the energy sector. Nearly two‑thirds of ENR CEOs now rank generative AI among their top investment priorities, with most expecting returns within one to three years.

In Canada’s oil and gas industry, AI is already delivering tangible operational value — from optimizing drilling and reservoir performance to enabling predictive maintenance, improving supply chain visibility, and supporting faster, data‑driven decision‑making. Increasingly, AI is also viewed as a critical enabler of sustainability outcomes, helping organizations improve emissions monitoring, energy efficiency, and the quality of ESG data and reporting.

The pace of adoption underscores a broader shift: digital capabilities are no longer viewed as optional or experimental. They are becoming foundational to competitiveness, resilience, and execution in a complex operating environment.

Workforce strategy is on the agenda

As digital transformation accelerates, workforce readiness has become a strategic priority. While 80 percent of ENR CEOs say their organizations are prepared for AI’s impact on the workforce, the survey also highlights persistent challenges around skills gaps and talent competition.

For Canada’s oil and gas industry, these pressures are amplified by demographic shifts and competition for digital and engineering talent from other sectors. In response, leaders are investing in reskilling and upskilling programs, redesigning roles, and redeploying employees into AI‑enabled functions.

Clear communication with employees is emerging as a key differentiator. Leaders who actively engage their workforce around how AI will reshape roles and career paths rather than implementing change in isolation, are better positioned to maintain trust, productivity, and momentum through transformation.

Turning ESG ambition into execution

Sustainability remains firmly embedded in strategy, with 80 percent of ENR CEOs reporting that ESG is integrated into corporate priorities. Yet many also acknowledge a gap between ambition and execution.

For Canadian oil and gas leaders, the challenge is practical rather than ideological. Decarbonizing complex operations, navigating inconsistent regulatory regimes, and accessing reliable emissions data remain hurdles. While companies continue to advance decarbonization goals and plans many CEOs recognize that their ESG strategies are not yet keeping pace with certain stakeholder expectations

Here again, technology plays a leading role. Advanced analytics, AI‑driven monitoring and improved data integration are helping companies move from high‑level commitments to measurable outcomes supporting more credible reporting, better risk management and more informed investment decisions.

Partnering for what comes next

The 2025 Global Energy, Natural Resources and Chemicals CEO Outlook underscores a clear reality for Canada’s oil and gas leaders: success in today’s environment depends on disciplined execution, technology‑enabled decision‑making and the ability to manage risk, talent, and transformation in parallel.

Keep reading to learn more about how leaders in the sector are confidently navigating industry challenges and shaping their strategies for long-term success.

Corporate summary

KPMG Canada's full suite of ESG, legal, technical, tax, audit and advisory services can equip you with the tools for confident navigation of the ever-evolving energy sector, ensuring a future that is both resilient and sustainable. Tailored, measurable, and transparent, our approach can set the industry benchmark for excellence. Let’s connect!