Energy Exports to the US
- Oil and natural gas exports make up a key part of Canada’s merchandise trade. Energy exports, almost entirely to the United States, amounted to Cdn$103.5 billion in 2011, about 22.7 per cent of the value of Canada’s total exports.
- Illinois, Washington, Minnesota, New Hampshire and New York are the top five states for Canadian energy exports.
- Canada is the largest, safest and most secure supplier of oil, natural gas, uranium and electricity to the United States. Free trade and open markets, as well as a stable policy and regulatory framework, encourage energy investments and strengthen North American energy security.
- Canadian oil production is forecast to increase from 2.8 million barrels per day in 2010 to 4.7 million barrels per day by 2025. By 2025, about 80 per cent of Canadian oil production could come from the oil sands. In 2011, Canada exported 2.2 million barrels of crude oil per day, 99 per cent of which went to the United States. Canada has been the biggest supplier of imported crude oil and petroleum products to the United States since 1999. In 2011, Canada supplied 24.3 per cent of U.S. oil and product imports.
- The value of Canadian petroleum product exports to the United States amounted to US$13.5 billion in 2010, and consisted primarily of gasoline shipped from the Atlantic provinces. Canada imported US$4.6 billion worth of petroleum products from the United States in 2010, 33 per cent of which entered through Québec and 31 per cent through the western provinces.
- Canada is the third-largest producer of natural gas in the world. In 2010, Canada supplied the U.S. with 3,255 billion cubic feet, or 87 per cent of its natural gas imports. However, if access to unconventional sources of natural gas such as shale gas continues to increase in the U.S., Canada’s market share in the U.S. will likely decrease. For this reason, Canada is likely to gradually diversify its export markets, with a particular focus on countries in the Pacific Rim. Three liquefied natural gas export terminals are planned along Canada’s West Coast.
- Canada and the U.S. share an integrated electricity grid and supply almost all of each other’s electricity imports. Canada is a net exporter of electricity and a major supplier of electricity (overwhelmingly clean hydroelectricity) to New England, New York, the Upper Midwest, Pacific Northwest and California. The interconnected Canada-United States power grids ensure a more efficient, shared electricity system. Integration allows both countries to use assets in a more efficient way that would not be possible without trade.
Learn more about the strong energy relationship between Canada and the United States on this map.