"Unrefined Oil and Gas Products from Canada to the USA:
Crude Oil:
In 2023, Canada exported approximately 24% of the U.S. refinery throughput, indicating that nearly a quarter of the oil processed in U.S. refineries comes from Canada.
In 2021, Canada supplied 62% of all U.S. crude oil imports.
Canada provides roughly 52% to 60% of U.S. oil imports, based on various sources.
Natural Gas:
Canada supplies 98% of the U.S.'s natural gas imports.
Market Impact in the USA:
Oil Market:
Canadian heavy crude, especially from the oil sands, is vital for U.S. refineries configured to process heavier crude types, particularly in the Midwest and Gulf Coast. This dependency is significant for U.S. energy security and refining operations.
Natural Gas Market:
While Canada supplies nearly all of the U.S.'s natural gas imports, these imports are part of a broader North American energy market where supply and demand are balanced across borders.
General Impact:
The integration of Canadian and U.S. energy markets means that Canadian exports play a crucial role in U.S. energy supply, influencing market dynamics, prices, and availability. Any disruption could have significant economic and supply chain implications.
Economic Considerations:
Beyond direct energy supply, this trade supports jobs, refining capacity, and infrastructure development in both countries.
U.S. Capacity to Produce Natural Gas:
Domestic Production: The U.S. is the world's largest natural gas producer, with significant output from shale formations like the Permian Basin, Haynesville, Eagle Ford, and Appalachia (Marcellus and Utica).
Associated Gas: Much of the natural gas is produced alongside oil, with projections for growth in associated gas due to rising oil prices and regulatory changes favoring gas capture.
Self-Sufficiency: The U.S. is largely self-sufficient in natural gas, with domestic production exceeding consumption, leading to significant LNG exports.
Imports from Canada: Imports serve to optimize supply across North America, ensuring energy security and taking advantage of existing infrastructure. While Canada supplies most of the U.S.'s natural gas imports, this reflects market dynamics rather than a lack of domestic production capacity.
Infrastructure: The U.S. has developed extensive natural gas infrastructure but still uses imports to balance regional supply and demand.
In summary, while Canada is a significant supplier of both oil and natural gas to the U.S., the U.S. has considerable capacity to produce these resources domestically. The relationship is one of mutual benefit, optimizing energy distribution across North America, with imports from Canada playing a key role in market balance rather than solely meeting a production shortfall." ....S Eliz...
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