News

API report highlights importance of development, maintenance of U.S.-Canada energy infrastructure

According to a new report from the American Petroleum Institute (API), the cross-border petroleum trade between the United States and Canada has furthered the integration of North American energy markets and benefited the economy at large and consumers in particular.

In the past 10 years, the report noted that the U.S.-Canada liquids trade nearly doubled, now representing 10-20 percent of total cross-border trade flow. Further, 72 percent of eastern Canada’s crude imports came from the U.S. in 2019, while on the flip side, Canada supplied 58 percent of the total U.S. heavy crude oil imports in the same year.

“The integration of U.S. and Canadian energy markets has been a win-win for both countries, supporting economic growth and lowering energy costs for working families while bolstering North American energy security,” Frank Macchiarola, API senior vice president of policy, economics, and regulatory affairs, said. “None of this would be possible without the cross-border energy infrastructure that enables the safe and efficient transport of these energy resources. Continued development and maintenance of this critical infrastructure is essential to furthering the success and mutual benefits of this important trade relationship.”

Macchiarola made his remarks while delivering the keynote address to the industry’s annual Scotiabank CAPP Energy Symposium.

As a result of the integration, the report highlighted a growing North American self-reliance, which allowed U.S. refiners to reduce crude oil imports from OPEC by 70 percent from 2010 to 2019. Eastern Canada has also benefited, enabling a 68 percent reduction in imports from OPEC. This, API believes, strengthens their respective energy security.

At the same time, U.S. states have seen massive economic benefits. In 2019, Illinois fared best, raking in a $2.2 billion increase in Gross State Product. Minnesota, Indiana, Oklahoma, Texas, and Michigan all benefited as well, taking in hundreds of millions of dollars due to the cross-border market integration.

Chris Galford

Recent Posts

Limestone Ridge Project brings greater reliability to Southeast Missouri

In collaboration with Wabash Valley Power Alliance (WVPA), Ameren Transmission finished work on the Limestone Ridge Project at the end…

1 day ago

Consumers Energy partners with Muskegon County for 250 MW solar facility in Michigan

Beginning in April, Consumers Energy of Michigan, the Muskegon County Resource Recovery Center, and Moorland Township will work together to…

1 day ago

FirstEnergy completes sale of 30 percent stake in transmission subsidiary

FirstEnergy Corp. completed its sale of an additional 30 percent ownership interest in its FirstEnergy Transmission subsidiary to Brookfield Super-Core…

1 day ago

DOE to award $22M to improve permitting process for clean energy projects

The U.S. Department of Energy (DOE) is awarding up to $22 million to improve planning, siting, and permitting processes for…

1 day ago

Kentucky legislature seeks to expand state’s power over coal plants

A bill in Kentucky that could become law soon has the utilities industry concerned, along with environmental, business, and consumer…

2 days ago

Duke Energy progress seeking approval to build new solar facility

Duke Energy Progress is seeking approval from the Public Service Commission of South Carolina (PSCSC) to build and own a…

2 days ago

This website uses cookies.