Released November 26, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land Texas)
Much of the U.S. refining sector is tailored to run heavy-grade crude oils, rather than the light, sweet crude oil found in domestic shale basins. West Canadian Select is a heavy, sour crude oil, and helps position Canada as the top foreign crude oil supplier to the U.S. economy. Much of that goes to facilities such as BP's refinery in Whiting, Indiana, centered in PADD II, the U.S. Midwest.
Through September, federal Canadian data show exports of crude oil to the U.S. averaged 3.45 million barrels per day (BBL/d), 4.2% above year-ago levels. Exports to the U.S. economy have increased every year since at least 2015.
Canada accounts for 60% of the total foreign oil sent to the United States, with Mexico at a distant second with 7% of the foreign oil. Disputes over the tariff policy pursued by U.S. President Donald Trump, however, has disrupted trade across North American borders, prompting oil-rich Canada to look for alternatives.
Right now, the Trans Mountain crude oil pipeline to British Columbia is the only network capable of non-U.S. exports. An expansion project completed in May 2024 nearly tripled the capacity on the 36-inch, 720-mile Trans Mountain system to a total of 890,000 BBL/d. The Canadian government said crude oil exports to countries other than the United States have more than tripled since the expansion project was completed.
But British Columbia's government is upset. Premier David Eby was quoted in The Canadian Press as telling Prime Minister Mark Carney that it was "unacceptable" to discuss the pipeline with Alberta and Saskatchewan, but not his government.
"This is not something that would happen to other provinces in the federation," he said. "I don't know why the thought was that it would be okay for it to happen to British Columbia."
British Columbia authorities have already backed dredging near the Trans Mountain terminal in the province, though a tanker ban for parts of the coast could be problematic should leaders back more options for crude oil exports.
Eby added he was "not threatened by a project that doesn't actually exist," adding the proposal from Smith's administration was "a communications exercise."
Key Takeaways
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Summary
Even though political ties between the United States and Canada are deteriorating, federal Canadian data show crude oil exports to U.S. refinery centers have increased every year since at least 2015.Exports up 4% Year-on-Year
Amid internal debates on a possible new crude oil export pipeline for Canada, national data show exports to the U.S. economy were up more than 4% to September.Much of the U.S. refining sector is tailored to run heavy-grade crude oils, rather than the light, sweet crude oil found in domestic shale basins. West Canadian Select is a heavy, sour crude oil, and helps position Canada as the top foreign crude oil supplier to the U.S. economy. Much of that goes to facilities such as BP's refinery in Whiting, Indiana, centered in PADD II, the U.S. Midwest.
Through September, federal Canadian data show exports of crude oil to the U.S. averaged 3.45 million barrels per day (BBL/d), 4.2% above year-ago levels. Exports to the U.S. economy have increased every year since at least 2015.
Canada accounts for 60% of the total foreign oil sent to the United States, with Mexico at a distant second with 7% of the foreign oil. Disputes over the tariff policy pursued by U.S. President Donald Trump, however, has disrupted trade across North American borders, prompting oil-rich Canada to look for alternatives.
Right now, the Trans Mountain crude oil pipeline to British Columbia is the only network capable of non-U.S. exports. An expansion project completed in May 2024 nearly tripled the capacity on the 36-inch, 720-mile Trans Mountain system to a total of 890,000 BBL/d. The Canadian government said crude oil exports to countries other than the United States have more than tripled since the expansion project was completed.
A New Canadian Pipeline?
Alberta Premier Danielle Smith first proposed a new export option for British Columbia, and Saskatchewan's government has added its support for a network that could carry as much as 1 million BBL/d.But British Columbia's government is upset. Premier David Eby was quoted in The Canadian Press as telling Prime Minister Mark Carney that it was "unacceptable" to discuss the pipeline with Alberta and Saskatchewan, but not his government.
"This is not something that would happen to other provinces in the federation," he said. "I don't know why the thought was that it would be okay for it to happen to British Columbia."
British Columbia authorities have already backed dredging near the Trans Mountain terminal in the province, though a tanker ban for parts of the coast could be problematic should leaders back more options for crude oil exports.
Eby added he was "not threatened by a project that doesn't actually exist," adding the proposal from Smith's administration was "a communications exercise."
Key Takeaways
- Canadian crude oil exports to U.S. economy up year-on-year.
- Provincial and national leaders are bickering over a new pipeline proposal.
- Deliveries are up even as bilateral ties turn sour.
- 60% of foreign oil imports to U.S. come from Canada
- 1 million BBL/d pipeline proposed to Canadian leaders
- 4.2% year-on-year increase in deliveries to the U.S. to September
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, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
