Canadian Energy Trade Still Tied to U.S. Economy

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Canadian Prime Minister Mark Carney wants to cut U.S. trade in response to President Donald Trump's aggressive rhetoric. Recent federal data from Canada show that would be an uphill battle.

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Canada Bound Tightly to U.S. Market

With the Canadian government on a trade diversification spree, federal data show that more than half of its commodity exports went to the U.S. economy.

IIR News Intelligence is tracking trade developments in Canada that have surfaced during U.S. President Donald Trump's second term. With tariffs and annexation threats coming from the White House, Canada is on a trade diversification spree. According to Industrial Info Resources data, there are 411 active capital Oil & Gas Production projects in Canada with a total investment value of US$175.48 billion. For related information, see May 28, 2026, article - Canada's Ksi Lisims LNG a Slam Dunk, Premier Says.

On Wednesday, the government lauded the first-ever offtake agreement for liquefied natural gas (LNG) with a European trading partner with German energy company SEFE securing volumes from the planned Ksi Lisims export facility in British Columbia. Industrial Info Resources offers more information on Ksi Lisims in its Global Market Intelligence (GMI) Oil & Gas Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

"Congratulations to Prime Minister Mark Carney on putting the puck in the net, side-by-side with our new partners in Germany," said David Eby, the premier of British Columbia.

Elsewhere, Canadian federal support is behind a potential new crude oil pipeline from Alberta to British Columbia, while LNG is already leaving the continent from the LNG Canada facility, Canada's largest and only facility of its kind capable of exports from the Pacific Coast of North America.

A snapshot of the bilateral trade relationship between the U.S. and Canada, however, shows how difficult it could be to break the ties.

A report released Tuesday by the Canada Energy Regulator noted the presence of a "network of dozens of pipelines transport crude oil, natural gas, natural gas liquids (NGLs), and refined petroleum products (RPPs) between Canada and the U.S., along with fleets of rail, marine and freight vehicles."

The report added, "Additionally, 86 international power lines move electricity between provinces and U.S. states."

By the Numbers

• US$114 billion in energy exports from Canada last year
• 60% of the foreign crude in the U.S. economy comes from Canada

Much of the U.S. refinery system is tailored to run heavier slates of crude oil, such as what's found in Canada, Saudi Arabia and Venezuela. It's Canada, however, that overshadows two of the founding members of the Organization of the Petroleum Exporting Countries with exports to the U.S.

During the seven-day period ending May 15, U.S. federal data show Canada delivered 3.7 million barrels per day (bpd) to the U.S. economy, compared to Saudi Arabia with 155,000 bpd.

"In 2025, Canada exported 4.3 million barrels per day of crude oil," the federal Canadian regulator said. "Of this, 90.1%, or 3.9 million barrels per day, went to the U.S."

Despite leading the world in natural gas production, the United States remains a net importer from Canada. IIR Energy in its NATGAS Today report for Thursday showed the U.S. economy taking in 4.7 billion cubic feet from Canada.

Total exports of crude oil, refined petroleum products, natural gas and natural gas exports were valued at US$114 billion last year, accounting for 20.2% of Canada's total goods exported globally.

Key Takeaways

• Canadian-U.S. energy sectors interconnected.
• But the prime minister wants to diversify Canadian trade.

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About Industrial Info Resources
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) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).