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.
