Released July 25, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land,
Texas)--As Canada looks to expand its trade arteries outside North America, government data to May show crude oil exports increased year-on-year, with nearly all of that going to the U.S. market.
At least since November, when Donald Trump emerged victorious in the 2024 presidential election contest, Canadian leaders have been looking to expand their trade options outside of North America due to his tariff pressures.
Trump railed Canadian leaders, calling on them to join the U.S. to avoid more economic pain. Since taking the oath of office in January, he's raised tariffs on Canadian metals and threatened oil and gas with a steep import tax as well.
Because many U.S. refineries are designed to run heavier grades of crude oil, rather than the light, sweet oil found in shale basins, Canada is the top crude oil exporter to the U.S. economy by far, accounting for about 60% of the foreign oil entering the market.
Federal Canadian data to May, the last full month for which it shared information, show total Canadian crude oil exports averaged 4.2 million barrels per day (BBL/d), a 2% increase from year-ago levels.
Of that, only about 542,400 BBL/d went to markets outside the U.S. Most of these exports go to PADD II, a petroleum district in and around the Great Lakes region. Historically, about 3% of Canadian crude oil makes its way outside of North America to the Netherlands, United Kingdom, Germany, Spain, France, Norway, Italy and Hong Kong.
Canada wants to do more. An expansion to the Trans Mountain crude oil pipeline to 880,000 BBL/d offers some options through exports from British Columbia, and Prime Minister Mark Carney, a former central bank official, has advocated for an expanded midstream network.
Canada recently heralded the debut delivery from the LNG Canada facility in British Columbia, which would presumably target economies of Asia looking to switch from coal. Japan, meanwhile, lacks many natural resources of its own and is heavily dependent on foreign supplies for natural gas.
Federal Canadian data to May, however, show all exports of liquefied natural gas (LNG) came from British Columbia and went to the U.S. market. Despite its own gas riches, the U.S. is a net importer of natural gas from Canada.
More than any other province, Alberta is the leader in Canadian oil and gas production. While pressing for expanded trade arteries, leaders there are working to diversify the economy. On Wednesday, the provincial government said it would use US$36 million from an industry-funded package to support 18 programs targeting recycling and waste management in industries ranging from critical minerals to carbon utilization and oil sands.
Among the funding targets is a first-ever recycling program for plastics from the agricultural sector and a facility that would turn wood waste from construction and demolition sites into usable building materials.
"This funding will help manufacturers do more with the resources we already have, producing the goods Albertans rely on while strengthening the province's global competitiveness, creating more jobs and protecting the environment," said Rebecca Shulz, the provincial minister of the environment.
The Bank of Canada meets next week to consider its rate policies as it works to bring inflation closer to its 2% target rate, down from about 3% currently. Tiff Macklem, a member of the St. John's board of trade in Newfoundland and Labrador, said last month that Canadian businesses are working hard to pivot away from the U.S., but breaking long-standing trade bonds is proving to be difficult.
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).
At least since November, when Donald Trump emerged victorious in the 2024 presidential election contest, Canadian leaders have been looking to expand their trade options outside of North America due to his tariff pressures.
Trump railed Canadian leaders, calling on them to join the U.S. to avoid more economic pain. Since taking the oath of office in January, he's raised tariffs on Canadian metals and threatened oil and gas with a steep import tax as well.
Because many U.S. refineries are designed to run heavier grades of crude oil, rather than the light, sweet oil found in shale basins, Canada is the top crude oil exporter to the U.S. economy by far, accounting for about 60% of the foreign oil entering the market.
Federal Canadian data to May, the last full month for which it shared information, show total Canadian crude oil exports averaged 4.2 million barrels per day (BBL/d), a 2% increase from year-ago levels.
Of that, only about 542,400 BBL/d went to markets outside the U.S. Most of these exports go to PADD II, a petroleum district in and around the Great Lakes region. Historically, about 3% of Canadian crude oil makes its way outside of North America to the Netherlands, United Kingdom, Germany, Spain, France, Norway, Italy and Hong Kong.
Canada wants to do more. An expansion to the Trans Mountain crude oil pipeline to 880,000 BBL/d offers some options through exports from British Columbia, and Prime Minister Mark Carney, a former central bank official, has advocated for an expanded midstream network.
Canada recently heralded the debut delivery from the LNG Canada facility in British Columbia, which would presumably target economies of Asia looking to switch from coal. Japan, meanwhile, lacks many natural resources of its own and is heavily dependent on foreign supplies for natural gas.
Federal Canadian data to May, however, show all exports of liquefied natural gas (LNG) came from British Columbia and went to the U.S. market. Despite its own gas riches, the U.S. is a net importer of natural gas from Canada.
More than any other province, Alberta is the leader in Canadian oil and gas production. While pressing for expanded trade arteries, leaders there are working to diversify the economy. On Wednesday, the provincial government said it would use US$36 million from an industry-funded package to support 18 programs targeting recycling and waste management in industries ranging from critical minerals to carbon utilization and oil sands.
Among the funding targets is a first-ever recycling program for plastics from the agricultural sector and a facility that would turn wood waste from construction and demolition sites into usable building materials.
"This funding will help manufacturers do more with the resources we already have, producing the goods Albertans rely on while strengthening the province's global competitiveness, creating more jobs and protecting the environment," said Rebecca Shulz, the provincial minister of the environment.
The Bank of Canada meets next week to consider its rate policies as it works to bring inflation closer to its 2% target rate, down from about 3% currently. Tiff Macklem, a member of the St. John's board of trade in Newfoundland and Labrador, said last month that Canadian businesses are working hard to pivot away from the U.S., but breaking long-standing trade bonds is proving to be difficult.
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).
