The total value of energy trade between the United States and Canada, which includes crude oil, natural gas, and petroleum products, reached a record $190 billion in 2022. This is up from the last record of $178 billion set in 2008, according to EIA.
This rebound was largely due to the increase in energy prices. The value of this trade depends on both the prices of raw materials and the volumes of imported and exported raw materials.
What hydrocarbons enter this energy trade?
Crude Oil:
US crude oil imports from Canada in 2022 averaged 3.7 million barrels per day (b/d), an increase of 38% over 2021.
US crude oil exports to Canada averaged 305,000 b/d by volume in 2022.
The oil that reaches the United States tends to be high in sulfur and originates from oil sands. This oil is mostly sent to refineries in the US Midwest.
On the other hand, the oil that is exported to Canada has low density and low sulfur content.
Petroleum Products:
The United States imported 580,000 b/d of petroleum products from Canada. The value of these imports increased by 35%, or $22 billion, between 2021 and 2022.
US petroleum product exports to Canada in 2022 averaged 524,000 b/d, which was similar to the 2021 average. However, the value of US petroleum product exports to Canada in 2022 was 36% higher than in 2021.
Natural Gas:
Canada's natural gas imports in 2021 and 2022 averaged 7.6 billion cubic feet per day (Bcf/d), but the value of these imports was 76% higher in 2022.
In both 2021 and 2022, natural gas exports to Canada averaged 2.5 Bcf/d. However, the value nearly doubled, totaling $4.1 billion in 2022.
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