Released March 24, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Canadian Prime Minister Mark Carney said after meeting with leaders in oil-rich Alberta that his new administration was open to expanding trade options outside North America.
U.S. President Donald Trump is working to restructure North American trade through tariffs, upending a free-trade agreement he brokered during his first term in office that ended in 2021. The Organization for Economic Cooperation and Development (OECD) was among the institutions warning recently that tariffs would undermine growth and put more wind in the global inflationary sails.
Canada and Mexico represent the top two crude oil exporters to the U.S., respectively. But Canada's average delivery of about 4 million barrels per day (BBL/d) represents 60% of the total oil sent to the U.S. Much of the U.S. refinery sector is tailored to Canadian crude, and both countries are connected by a web of cross-border pipelines.
Speaking with Carney, Alberta Premier Danielle Smith made it clear she was frustrated both domestically and globally. Handing Carney a list of demands that included lifting a ban on large tankers off British Columbia and repealing a so-called no-new-pipelines act, known as Bill C-69, Smith said she would not accept restrictions on oil or natural gas.
Crude oil exports accounted for US$86 billion in revenue in 2023, the last full year for which Canada published data. The U.S., meanwhile, accounted for 97% of total Canadian crude oil exports, and Alberta contributed 87% of that. About 3% of the crude oil exports went largely to European economies.
Canadian midstream networks are tied to the U.S. An expansion of the Trans Mountain crude oil pipeline to British Columbia offers some export flexibility, although Canada is largely landlocked in midstream terms.
Approved in 2019, an expansion pushed the capacity on the 714-mile pipeline that runs from Alberta to 880,000 BBL/d. That represents barely 20% of what is sent to the U.S.
Earlier this year, Smith advocated for east-west trade corridors to reduce the dependency on the U.S. economy. Carney, for his part, recognized the need to build out more infrastructure, suggesting deeper links between Alberta and the western coastal provinces, including pipelines.
Canada already is diversifying. The Port of Vancouver reported last week that 158 million metric tons of cargo moved through its system last year, a record that was 5% above 2023 levels.
"The Port of Vancouver continues to drive Canadian prosperity--enabling seamless trade with up to 170 nations across the globe and supporting countless well-paying family jobs across the nation," said Peter Xotta, the president and chief executive officer of the port authority. The port said liquid bulk exports surged 203% year-over-year, with petroleum moving through the Trans Mountain pipeline supporting the increase. Diversifying trade options, the port authority said more than half of the crude oil deliveries since May 2024 went to the expanding economies in the Asia-Pacific. For more information, see March 12, 2025, article - Oil Supports Record Exports from Port of Vancouver.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
U.S. President Donald Trump is working to restructure North American trade through tariffs, upending a free-trade agreement he brokered during his first term in office that ended in 2021. The Organization for Economic Cooperation and Development (OECD) was among the institutions warning recently that tariffs would undermine growth and put more wind in the global inflationary sails.
Canada and Mexico represent the top two crude oil exporters to the U.S., respectively. But Canada's average delivery of about 4 million barrels per day (BBL/d) represents 60% of the total oil sent to the U.S. Much of the U.S. refinery sector is tailored to Canadian crude, and both countries are connected by a web of cross-border pipelines.
Speaking with Carney, Alberta Premier Danielle Smith made it clear she was frustrated both domestically and globally. Handing Carney a list of demands that included lifting a ban on large tankers off British Columbia and repealing a so-called no-new-pipelines act, known as Bill C-69, Smith said she would not accept restrictions on oil or natural gas.
Crude oil exports accounted for US$86 billion in revenue in 2023, the last full year for which Canada published data. The U.S., meanwhile, accounted for 97% of total Canadian crude oil exports, and Alberta contributed 87% of that. About 3% of the crude oil exports went largely to European economies.
Canadian midstream networks are tied to the U.S. An expansion of the Trans Mountain crude oil pipeline to British Columbia offers some export flexibility, although Canada is largely landlocked in midstream terms.
Approved in 2019, an expansion pushed the capacity on the 714-mile pipeline that runs from Alberta to 880,000 BBL/d. That represents barely 20% of what is sent to the U.S.
Earlier this year, Smith advocated for east-west trade corridors to reduce the dependency on the U.S. economy. Carney, for his part, recognized the need to build out more infrastructure, suggesting deeper links between Alberta and the western coastal provinces, including pipelines.
Canada already is diversifying. The Port of Vancouver reported last week that 158 million metric tons of cargo moved through its system last year, a record that was 5% above 2023 levels.
"The Port of Vancouver continues to drive Canadian prosperity--enabling seamless trade with up to 170 nations across the globe and supporting countless well-paying family jobs across the nation," said Peter Xotta, the president and chief executive officer of the port authority. The port said liquid bulk exports surged 203% year-over-year, with petroleum moving through the Trans Mountain pipeline supporting the increase. Diversifying trade options, the port authority said more than half of the crude oil deliveries since May 2024 went to the expanding economies in the Asia-Pacific. For more information, see March 12, 2025, article - Oil Supports Record Exports from Port of Vancouver.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
