US Dependence on Canadian Crude Oil Grows

As of January 2024, Canadian crude oil imports constitute 60% of U.S. crude imports, a significant increase from 33% in 2013, reflecting a growing dependency on Canada for refining needs. Canadian crude production has risen to 4.6 million barrels per day, far outpacing its domestic refining capacity of 1.7 million barrels per day, thereby supporting U.S. refineries that have a capacity of 18.4 million barrels per day. The expansion of pipeline infrastructure, particularly the Trans Mountain Expansion Project, has facilitated this surge, enabling increased exports to the U.S. Meanwhile, Canadian railroads are facing operational pressures and potential strikes that could disrupt freight flows, prompting shippers to reroute goods to U.S. ports. Canadian crude exports are also shifting away from Asian markets, with a notable increase in shipments to the U.S. West Coast, indicating a dynamic change in trading patterns. This evolving relationship underscores the critical role Canadian oil plays in U.S. energy security and economic stability.