Middle East geopolitical tensions have roiled global energy markets since 2026, driving a sharp rally in crude oil prices. The international benchmark Brent crude has surged more than 50%, climbing from around $60 per barrel to above $90. While the price has retreated from its near $120 per barrel peak seen at the onset of the conflict, the long-term supply and demand dynamics across the energy sector have undergone notable shifts.
Many market participants believe oil prices will slump and stay subdued once the United States and Iran strike a peace deal and shipping through the Strait of Hormuz fully resumes. However, Wael Sawan, CEO of energy major Shell (SHEL), holds a contrasting view. He forecasts that oil prices will keep rising for another five to ten years, even after the regional conflict comes to an end.
Sawan’s outlook stems from fundamental imbalances in global energy supply and demand. Easy-to-access oil and gas reserves are largely depleted today, leaving companies to tap resources that are costly to develop and uneconomical under current price levels. Meanwhile, global energy demand continues to expand, and output from mature oilfields keeps declining. Higher oil prices will be necessary to make expensive new developments viable, laying a solid foundation for a prolonged uptrend in crude prices.
Against this bullish backdrop for oil, Enbridge Inc. (ENB), a leading Canadian energy infrastructure firm, emerges as an appealing pick for long-term investors, thanks to its dominant market position, resilient cash flows and attractive dividend payouts.
A backbone of North America’s energy transportation network, Enbridge operates across crude oil pipelines, natural gas transmission, gas distribution and renewable energy. Its infrastructure handles 30% of crude output and 20% of natural gas consumption across North America, serving over 75% of the continent’s refineries. The company has secured approval for a $40 billion expansion plan spanning its entire business portfolio, fueling robust growth through the rest of the decade.
Enbridge boasts solid financial performance and an impressive track record of returning value to shareholders. It projects its 2026 EBITDA will range from C$20.2 billion to C$20.8 billion, representing a year-on-year growth of 1% to 4%. The growth rate is expected to pick up to around 5% annually in the years ahead. Most notably, the company has raised its annual dividend for 31 consecutive years, with a current dividend yield of nearly 5%. Its consistent dividend growth places it among the most reliable dividend stocks on the Toronto Stock Exchange.
Supported by long-term take-or-pay contracts and regulatory frameworks, Enbridge’s cash flows are highly predictable and resilient amid market volatility. The stock currently trades at a trailing price-to-earnings ratio of 26.8 times, above its historical average. Nonetheless, the premium is justified given its irreplaceable industry status, steady growth momentum and reliable dividend policy.
Driven by rising energy security priorities and the long-term upward trend of oil prices, Enbridge combines strong defensive capabilities and solid growth potential. It delivers steady passive income via generous dividends and can weather market cycles as an essential energy infrastructure provider. For investors seeking stable long-term returns, this Canadian energy leader is a core holding to capitalize on lasting opportunities in the energy sector.
