Dane Gregoris (Enverus) - Why Capital Is Returning To CAD Energy

Canadian oil and gas equities are experiencing significant relative outperformance compared to US markets, driven by a growing recognition of the sector's long-term resource durability and the sustained necessity of hydrocarbons. While US shale production faces a flattening trajectory due to declining productivity per lateral foot and reduced rig counts, efficiency gains—specifically the industry-wide shift toward longer lateral drilling—continue to support output levels. The integration of AI into energy operations offers further potential for operational optimization, even as the broader software sector faces disruption. Canada is increasingly well-positioned to capitalize on rising Asian demand for natural gas through the expansion of LNG export capacity. Dane Gregoris, Head of Oil and Gas Research at Enverus, notes that while North America remains a global leader in energy, the long-term outlook requires higher prices to incentivize development as high-quality Tier 1 resources become increasingly scarce.