A Strong Partnership

Canada and U.S. Crude Oil Pipelines

The North American oil marketplace continues to evolve with growing Canadian oilsands production seeking new markets, declining availability of Venezuelan heavy oil in the U.S. Gulf Coast and increasing interest from Pacific refiners in Canadian production. Pipeline companies and producers are re-evaluating the route and timing of post-2012 transportation options. But currently in excess of one million barrels per day of capacity from Alberta to the U.S. Gulf Coast is under construction.

Crude Oil Production and Equivalent Supply and Distribution

While Alberta continues to represent the vast majority of oil production in Canada, heavy oil from Saskatchewan and offshore oil from Newfoundland play growing roles in supplying North American. This map vividly illustrates that North America is evolving into a single continental marketplace.

Canada and U.S. Natural Gas Pipelines

The North American natural gas pipeline system is a fully integrated natural gas transportation and distribution network with only one significant new supply source left unconnected Arctic gas. If Alaska or the Northwest Territories is ever to be connected, it will require enormous capital expenditures (Mackenzie over $15 billion and Alaska over $40 billion) within one of the most stringent regulatory approvals environments.

Natural Gas Production and Distribution

The Province of Alberta is the dominant natural gas producer in Canada but British Columbia has grown significantly over the past few years and is experiencing enormous interest due to its shale gas prospects. This map shows the importance of the U.S. marketplace to Canadian producers, which in 2008 saw a significant decline in exports due to slower economic conditions and an 8-10% increase in U.S. production.