Pipeline Could Increase U.S. Oil Imports from Canada

---

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

---

Summary

A crude oil pipeline from Canada could lead to an increase in U.S. imports of foreign oil. It would run counter to Canadian efforts to expand non-U.S. trade.

---

Bridger Pipeline to Carry More Crude

A proposed pipeline from Canada to Wyoming could increase the amount of foreign crude oil delivered to U.S. refineries by more than 12%, filings show.

Refineries such as BP's facility in Whiting, Indiana, predate the shale era by more than a century, running instead heavier types of crude oil such as what's found in Canada. The northern neighbor to the largest crude oil producer in the world is actually it's largest exporter.

Over the seven-day period to March 27, U.S. federal data show Canada delivered an average of 3.8 million barrels per day (BBL/d) to the U.S. economy, accounting for about 60% of foreign deliveries.

More may be coming now that Bridger Pipeline is proposing revisions to a network that could carry Canadian crude oil to Wyoming. The Reuters news service, referencing unspecified filings by the company, said the network would be able to carry as much as 1 million BBL/d and cost around $2 billion to complete.

Data from Industrial Info show the original design called for peak throughput of around 550,000 BBL/d, carrying a total investment value of around $1.5 billion.

"The project with 435 miles originating in Montana and terminating in Wyoming is designed to handle 550,000 barrels per day of capacity, often utilizing existing right-of-way corridors, and includes a potential extension to Steele City, Nebraska, for further connection to Gulf Coast markets," Industrial Info's profile read.

Subscribers to Industrial Info's Global Market Intelligence (GMI) PIpelines Project Database can learn more by viewing the related project reports.

But What Does Canada Want?

Bridger could partner up with Canadian energy company South Bow, which is pressing to breathe new life into the cancelled Keystone XL oil pipeline project that would've carried oil from Alberta all the way to the U.S. Gulf Coast.

Keystone XL was cancelled amid environmental and aboriginal concerns. Should Bridger move forward, it would need additional tie-ins as Wyoming is far from central market hubs such as Cushing, Oklahoma.

Elsewhere, Bridger would run counter to Canadian efforts to diversify its trade networks. Incensed by the trade rhetoric from U.S. President Donald Trump, Canadian Prime Minister Mark Carney is pressing to halve the amount of U.S. trade within the next few years.

The United States is Canada's largest trading partner, though Canadians have largely boycotted U.S. goods and travel since Trump's return to the White House. Backing that initiative, the provincial government of Alberta outlined a spending wish list as part of its annual budget proposal in March.

The government earmarked US$5.2 billion for local infrastructure needs, including roads, and said it was committing US$11 million over the next two years to support the planning for a proposed crude oil pipeline to British Columbia. Alberta's government already committed US$10 million last year to support early engineering work, cost estimates and community engagement for the proposed pipeline.

Once those steps are completed, the provincial government said it expected the private sector to take up the project from there.

The so-called Northwest Coast Oil Pipeline already includes Calgary-based energy companies Enbridge, Trans Mountain and South Bow on its advisory committee.

The Trans Mountain network is currently the only midstream network capable of delivering Canadian crude oil outside of North America. An expansion project completed in May 2024 nearly tripled the capacity on the pipeline system to a total of 890,000 barrels per day (BBL/d).

By the Numbers

• 12% increase in U.S. oil imports from Canada
• $2 billion price tag for proposed pipeline

Key Takeaways

• Canada is working to cut, not expand, U.S. trade
• U.S. refineries can't handle much shale oil

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

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 250,000 current and future projects worth $30.2 trillion (USD).