The value of energy trade between the United States and Canada decreased in 2023, marking a significant drop from the record levels seen in 2022. According to data from the U.S. Census Bureau, the total value of energy traded between the two countries fell by 20 percent to $152 billion when adjusted for inflation, despite the volume of trade remaining largely stable.
Energy trade value encompasses the combined worth of energy imports and exports, influenced by both commodity prices and trade volumes. In 2023, U.S. imports from Canada totaled $125 billion, far surpassing the $27 billion of U.S. exports to Canada.
Crude Oil Trade
U.S. crude oil imports from Canada averaged 3.9 million barrels per day (b/d) in 2023, a 2 percent increase from 2022. However, the value of these imports declined by 18 percent to $93 billion, due to the average price of crude oil dropping from $101 per barrel in 2022 to $82 per barrel in 2023. Canada remained a crucial supplier, accounting for 60 percent of all U.S. crude oil imports.
U.S. crude oil exports to Canada averaged 339,000 b/d, a slight rise from 2022. Despite this, the value of these exports fell by 15 percent to $10 billion. U.S. crude exports to Canada primarily consist of low-density, low-sulfur grades sent to Eastern Canada, comprising just 8 percent of total U.S. crude oil export volumes. In contrast, U.S. imports from Canada mainly consist of high-sulfur crude from Western Canada’s oil sands, destined for Midwestern and Gulf Coast refineries.
The recent expansion of the Trans Mountain Pipeline, which significantly increased the capacity to transport Alberta’s crude oil to the port of Burnaby, British Columbia, is expected to redirect some of Canada’s oil exports from the U.S. to new international markets.
Petroleum Products
Petroleum product trade between the two countries decreased by 6 percent in volume and 19 percent in value in 2023. The U.S. imported 549,000 b/d of petroleum products from Canada, a 3 percent decrease, leading to an 18 percent reduction in value to $18 billion. U.S. petroleum product exports to Canada averaged 460,000 b/d, down 10 percent from 2022, with the value dropping by 20 percent to $22 billion.
Natural Gas
Natural gas trade value plummeted due to historically low prices in 2023. U.S. natural gas imports from Canada averaged 8.0 billion cubic feet per day (Bcf/d), 3 percent less than in 2022, with the value falling 36 percent. Conversely, natural gas exports to Canada increased by 7 percent to 2.8 Bcf/d, but the value nearly halved to $2 billion.
Electricity
Electricity trade, though smaller compared to other energy sources, totaled $5 billion in 2023, mostly comprising imports from Canada. The value of imported electricity fell by 19 percent, yet it still represented 74 percent of the total electricity trade between the two countries.
The overall decline in the value of energy trade between the United States and Canada in 2023 underscores the significant impact of fluctuating energy prices, despite stable trade volumes.
GreentechLead.com News Desk