Alberta’s government is in talks with energy infrastructure majors to construct more oil pipelines to the United States, the premier of the province told Bloomberg in a recent interview.
“I know the Americans have increased production pretty dramatically in the last 10 years, but it might not always be that way,” Smith told the publication, adding, “They need to know that if they’re looking for additional supply, they shouldn’t be looking to Iran or Venezuela. They should be looking to their friend up north.”
Indeed, Canada is the biggest supplier of heavy crude oil to U.S. refiners who need to blend it with local light crude to produce fuels. U.S. crude is predominantly light and sweet, which refiners cannot process on its own—and it’s getting lighter and sweeter, which might become a problem down the road. The solution to that problem would be more Canadian heavy.
Canada’s energy exports to the United States two years ago were worth close to $160 billion—most of that in the form of crude oil, refined products, and natural gas. A year later, crude oil exports alone hit a record of some 4 million barrels daily. Of those, 97% went to the U.S., the Canada Energy Regulator reported earlier this year. Speaking of this year, Canadian crude oil exports south of the border broke last year’s record to reach 4.3 million barrels daily in July, the most recent month, for which the Energy Information Administration has factual numbers.