Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Oil prices have been pressured by Trump’s commitment to increasing domestic oil and gas supplies in the U.S. when he takes office. Meanwhile, Trump has previously proposed a 25% tariff on Canadian oil imports, making it likely that the Canadian energy sector will face greater headwinds in the new year. For investors, investing in energy stocks will be much less rewarding if oil prices enter a downward spiral.
However, the Canadian energy sector will remain an area to watch closely into 2025. If supply concerns such as production cuts by the Organization of the Petroleum Exporting Countries (OPEC+) keep oil prices stable, Canada, which is rich in oil sands and natural gas reserves, will benefit.
Meanwhile, energy companies that already have large reserves and strong balance sheets, and are preparing for long-term growth whether oil prices soar or fall, are worth investors’ attention in the new year ahead.
Indeed, Canadian energy giants are taking proactive steps to address geopolitical uncertainty and capitalize on emerging opportunities. Suncor Energy (TSX:SU), one of Canada’s most prominent oil sands producers, has been stepping up its focus on efficiency and production growth for years.
The company recently released its production forecast for 2025, targeting between 810,000 and 840,000 barrels per day (bpd), a significant increase from current levels.
The company’s recent earnings report already reflects this positive momentum, with Suncor’s earnings for the most recent quarter beating analysts’ expectations due to operational improvements and cost controls. The long-term outlook for this energy stock remains solid, bolstered by large oil sands reserves and improving cash flow.
Another energy stock for Canadian investors to consider for 2025 is Canadian Natural Resources (TSX:CNQ). The company is known for its vast oil and natural gas reserves, and its integrated operational capabilities give it an edge over its peers when it comes to controlling costs. Thanks to efficient production practices and disciplined financial management, this energy stock has shown an impressive ability to navigate market downturns over the past decade.
Canadian Natural Resources stock has been a strong performer recently, as strong commodity prices and growing production have boosted earnings. Looking ahead, this energy stock’s commitment to technological innovation and environmental sustainability, particularly in reducing emissions, makes it a top pick for forward-thinking investors.
From a dividend income perspective, Canadian Natural Resources stock currently yields 4.9% and Suncor Energy yields 4.3%. For investors focused on passive income, the dividend yields of these two stocks are not only safe, but have room for further growth.
