Canada’s largest oil refinery, Irving Oil, is seeking alternative supply options due to uncertainties caused by the U.S.-Iran conflict, which threatens its traditional source of crude oil. The refinery, located in Saint John, New Brunswick, has been heavily reliant on crude oil imports from Saudi Arabia since its establishment in 1960. However, citing the ongoing conflict and its impact on global oil supply chains, Irving Oil recently obtained approval from federal regulators to utilize a foreign-owned vessel to transport crude oil from Newfoundland’s offshore fields to its Saint John facility.
Expressing concerns about the disruptions in crude oil supply, Irving Oil emphasized the importance of diversifying its supply sources for the energy security of Atlantic Canada. Consequently, the company received clearance from Ottawa to receive up to 680,000 barrels of Newfoundland crude via the foreign vessel. Despite reaching out to Canadian vessel owners for alternative options, Irving Oil faced limitations in securing domestic transportation solutions.
The Saint John refinery, a key supplier of gasoline and other fuels to markets in the Maritimes and U.S. northeast, acknowledged the challenges posed by the U.S.-Iran conflict on its supply chain. As part of its strategic response, Irving Oil also received approval to import crude oil from the Texas gulf coast using a foreign ship in the coming months. Notably, the refinery’s reliance on Saudi crude oil has significantly decreased over the years, with the United States emerging as its primary source in 2025, followed closely by Nigeria.
The historical ties between Irving Oil and Saudi Arabia date back to the pre-refinery era when Standard Oil of California (Socal) established a partnership with Saudi Arabia for oil exploration and sales. This partnership continued through various ownership changes, with Irving Oil committing to sourcing its crude oil exclusively from Socal. Over the years, Irving Oil maintained a substantial volume of Saudi oil imports, even amidst discussions about diversifying its crude oil sources.
In response to the evolving market dynamics and geopolitical uncertainties, Irving Oil is actively exploring new partnerships with local crude producers in Newfoundland and Labrador to secure a stable supply chain. While the company remains silent on further details, its proactive approach to diversification reflects a strategic shift in its sourcing strategies to mitigate risks associated with geopolitical conflicts and supply disruptions.