According to the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER), nearly 8.7 million barrels of oil were extracted from offshore Newfoundland and Labrador in February 2026, an increase of 69.2% compared with February 2025 (see Figure 1). The corresponding value of production totalled $837.2 million, an increase of 51.7%.

The sharp increase in production was partly related to unusually low output in February 2025, when a three-week shutdown of the Whiffen Head transshipment terminal followed a shuttle tanker collision with one of the wharves on January 22, 2025. The shutdown resulted in production curtailments at the Hebron, Hibernia, and Terra Nova oil fields. The terminal resumed limited operations on February 13, 2025.

• Production increased at all oil fields in February, driven by a 58.9% rise in output at Hebron and a 75.3% increase at Hibernia. Production also increased at Terra Nova (+47.8%). Output at White Rose remained steady relative to recent months; the SeaRose FPSO resumed operations on March 13, 2025, after being offline since January 2024 for a refit.
• Brent crude oil prices averaged US$70.89/barrel in February 2026, a 6.0% decrease from US$75.44/barrel in February 2025.

Through early 2026, global oil market conditions have been dominated by the escalating Iran war, with OPEC+ supply policy decisions and evolving U.S. trade measures playing important but secondary roles in shaping prices and volatility.

• Geopolitical tensions escalated sharply in late February 2026, as U.S.–Israeli strikes and Iranian retaliation effectively shut down the Strait of Hormuz, halting most tanker movements and damaging key regional energy infrastructure. The disruption of a corridor that normally carries about 20% of global oil supply has become the dominant driver of market volatility.
• OPEC+ maintained voluntary production cuts through mid‑2025 but began gradually unwinding them in the remainder of the year, most recently approving a 206,000 barrel per day increase for both April and May 2026. However, it’s key members are unable to raise production due to the war in Iran. OPEC+ recently warned that war-related damage to energy infrastructure could have impacts on oil supply even after war tensions ease.
• U.S. tariff policy shifted in early 2026 after a Supreme Court ruling invalidated existing tariffs. The U.S. administration subsequently imposed a temporary 10% global tariff, potentially rising to 15%. Most Canadian crude, including exports from Newfoundland and Labrador, continues to enter the U.S. duty‑free under CUSMA.
• Oil prices recently climbed to their highest levels since 2022, with Brent crude daily spot prices surpassing $120 per barrel in late March, nearly doubling since the start of the year, before easing back to around $110 per barrel in the first few days of April.

The estimated value of Newfoundland and Labrador’s crude oil output is in Canadian dollars; the average Canada-U.S. exchange rate in February 2026 stood at 73.3 cents/U.S. dollar, compared to 69.9 cents/U.S. dollar in February 2025.

On a year-to-date basis, the volume of oil production extracted from offshore Newfoundland and Labrador increased by 39.1% over the January to February 2026 period compared to the same period in 2025. The corresponding value increased by 17.6%.

Further information on the province’s oil and gas industry is available in The Economy 2025 (see Oil and Gas section).