EIA: US importing more crude from Canada, even as total imports falling; 25% of imports in 2011, 28% so far in 2012
28 November 2012
US imports of Canadian crude oil rose to record levels during the first eight months of 2012, with Canada accounting for a growing share of total gross US imports, according to the US Energy Information Administration (EIA). The United States is importing more crude oil from Canada, even though the total amount of crude oil America buys from foreign suppliers is falling.
Canada is the world's sixth-largest oil producer, and virtually all of its crude oil exports are directed to US refineries, the EIA noted in an earlier country briefing. Long a major onshore and offshore producer of conventional crude, the recent growth in Canada’s liquids production has been driven by bitumen and upgraded synthetic crude oil produced from the oil sands of Alberta. The vast majority of Canada’s reserves and the expected future growth in Canada’s liquids production will derive from unconventional resources.
Canada is the largest supplier of foreign oil to the United States, followed by Saudi Arabia, Mexico, and Venezuela. Almost 99% of Canadian oil exports are sent to the US market. Canada accounted for approximately 25% of US crude oil imports in 2011, averaging 2.2 million barrels per day.
In 2012, Canada supplied the US with a record of nearly 2.5 million barrels per day during January-August 2012, according to the latest oil trade data from EIA. At the same time, total US crude oil imports fell from 8.9 million barrels per day in 2011 to 8.7 million barrels per day through August 2012. As a result, the share of Canadian oil as a percentage of total U.S. oil imports during the eight-month period increased to 28%.
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| US imports of crude oil and percentage imports from Canada. Source: EIA. Click to enlarge. |
I think this is great. If we must import oil ( and we will for some time) I'd rather it be from Canada as opposed to the Far East. As our oil demand decreases. My hope is more oil is supplied from the states , Canada and Mexico.
Posted by: Jimr | 28 November 2012 at 11:36 AM
The real reason may be strictly economical.
Oil from Canada is as low as $85/barrel but about $110 to $115/barrel from the middle East and Norway etc.
This may change when the Trans-Mountain and the extended East Canada pipelines are in operation in 2016/2017 or so.
Posted by: HarveyD | 28 November 2012 at 12:00 PM
"The real reason may be strictly economical."
How crass.
People may work long hours for money, industries make and sell goods for money, unions go on strike for money and we patronize Walmart for money.
But import oil from Canada because it costs less?
Never.
You’ve gone too far with your platitudes HD.
We all know full well it is in reparation for the American invasions of the of Upper and Lower Canadian provinces in 1814, that we buy Canadian oil.
Posted by: ToppaTom | 28 November 2012 at 08:42 PM
TT...in the land of the all mighty dollar, lower cost oil from Canada is a bargain that (USA) Big Oil cannot refuse. They actually set the low price. That's why they want the new North-South pipeline all the way to Texan refineries so they can export the refined products and make more profits. They will be able to re-export Canadian Oil and make $20+/barrel profit. Multiply that by 2 to 3 million barrels per day and they could be real big money as re-sellers?
Eastern Canada currently pays about $115/barrel for imported Oil while Western Canada (and USA) pay about $86/barrel for Alberta Oil. When the Sarnia Ont to Montreal-Quebec City-Portland Me. pipelines flow is reversed from western to eastern flow, Easter Canada will have access to lower cost ($88 to $92/barrel) Alberta Oil like Western Canada and USA?
That double price policy is set by what Alberta currently can get for its oil South of the Border 'unique' market. The price difference is often as much as $27/barrel. That will last as long as Alberta has not established a competitive Asian market. That is an absolute must if Alberta wants to increase its production to 6+ million barrels/day and get something closer to the International price for its Oil.
Posted by: HarveyD | 29 November 2012 at 11:31 AM
TT...it is a well known fact that the International price for Oil has nothing to do with what it cost. The going price is artificial set by OPEC, Big Oil and Speculators without regards to the original cost which is as low as $3/barrel in Saudi Arabia and under $40 in Alberta.
Alberta should join OPEC to get the International price for its Oil and/or open its market to Asia, Eastern Canada, Eastern USA, Europe, South America, India etc.
Posted by: HarveyD | 29 November 2012 at 12:24 PM
HD, your rambling narrative makes no sense.
1. The LOWER limit on the selling price of most anything, in a free market, is set by the cost to produce it. You do not stay in business if you sell something for less than it costs.
2.The UPPER limit on the selling price is set by the market.
I will give a simple example.
Suppose you bought a house for $200k in 1980.
In 2005, it might be appraised at $600k (with good maintenance and moderate upgrades).
Would you sell it for about $200k in 2005, because to price it higher would be greedy?
If you say yes, then I understand, and all your ramblings cannot be expected to make sense.
Posted by: ToppaTom | 01 December 2012 at 06:32 AM
You might sell it at $200k if the difference between $200k and $600k were taxed at 100%. This would keep housing prices affordable. After 30 years the house is worn and needs repair.
Posted by: SJC | 01 December 2012 at 01:56 PM