Energy
The United States and Canada form the largest integrated energy market in the world. Energy trade between these countries exceeded $100 billion dollars (U.S.) in 2011. Together, they establish a continental market for energy across many types of fuels and products—petroleum products, natural gas, electricity, hydropower, coal and others. Currently, the bulk of energy by both trade dollars and physical volumes moves from Canada to the United States, although for some energy commodities the reverse is true.
Tight integration of energy markets across the U.S.-Canada border is apparent in many ways:
- Interconnected power grids, cross-border electricity markets, and reliability entities
- Integrated network of petroleum products and natural gas pipelines supporting seamless movements across both countries
- Numerous trading-point benchmarks such as the AECO-C natural gas hub in Alberta, Canada, that inform price discovery, commercial decision-making, and trading in both countries
- Joint ownership of some energy assets and infrastructure by U.S. and Canadian firms
- Rapid, seamless transfer of technology and market information
- Mutual use of key ways to store energy at strategic locations such as Dawn, Ontario, for natural gas, Cushing, Oklahoma, for crude oil, and reservoirs in Canada for hydro production
Below is a summary of energy trade by key product:
- Petroleum: Canada is the largest supplier of foreign oil to the United States. Canada accounted for approximately 25% of U.S. crude oil imports in 2011. The United States imported 2.8 million barrels per day (bbl/d) of oil and petroleum products from Canada in 2011, of which 2.2 million bbl/d were crude oil. Cross-border oil trade, however, flows in both directions. The United States exported about 305 thousand barrels per day of petroleum products and 46 thousand barrels of crude oil per day to Canada in 2011.
- Natural Gas: Canada remains a key exporter of natural gas to the United States. The United States imported about 8.5 billion cubic feet per day (Bcf/d) of natural gas from Canada in 2011, down from near-peak levels of 10.4 Bcf/d in 2007. Canada accounted for almost 90% of overall U.S. natural gas imports in 2011, most of which came from western Canadian provinces. Although the United States is a net importer of natural gas from Canada, it exported more than 900 Bcf of natural gas to Canada in 2011, up from less than 100 Bcf in 2000. New pipeline projects in the northeastern U.S. could transport increasing amounts of natural gas to Canada, especially from the Marcellus Basin, though some of that gas may be re-exported by Canada into other parts of the northeastern United States.
- Electric Power: Canada is the United States' electric reliability partner. The electric transmission systems in Canada and the United States are highly integrated, and the United States is a net importer of electricity from Canada. The major electricity trade flows from Canada to the United States occur from Manitoba to the Midwest and from eastern Canada to the New England, New York, and Midwest regional transmission organizations. On the other hand, the Pacific Northwest can be a net electricity exporter to Canada because its sizeable hydro capacity generates large amounts of electricity in excess of the region's need, particularly when river flows are highest in spring and early summer.
- Coal: Canada is a relatively minor market for U.S. coal exports. In 2012, coal exports to Canada will likely total only 4 million tons of coal out of projected total exports of 125 million tons.
- Translation:
- French
News and Events
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27 November 2012: Integrated electric grid improves reliability for United States, Canada
Although electricity imports and exports between the United States and Canada are low compared to total U.S. consumption and production, regional integration of the electrical grids plays an important role in improving electric reliability in both countries.
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26 November 2012: United States and Canada share the world’s most significant energy trade
The United States and Canada form the largest integrated energy market in the world.
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21 June 2012: United States, Canada Announce Next Phase of U.S.-Canada Clean Energy Dialogue
Today, the U.S. Department of Energy (DOE) and Environment Canada released the U.S.-Canada Clean Energy Dialogue (CED) Action Plan II, outlining the next phase of activities the two countries will undertake to jointly advance clean energy technologies.
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4 May 2012: U.S., Canada, Mexico Map Potential Carbon Dioxide Storage Capacity
Earlier this week, the U.S. Department of Energy (DOE) joined with Canada and Mexico to release the "North American Carbon Storage Atlas," the first atlas mapping potential carbon dioxide storage capacity in North America.
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30 April 2012: International Energy Affairs Envoy to Speak in Ottawa
On Thursday, May 10th, Ambassador Carlos Pascual, the State Department's Special Envoy and Coordinator for International Energy Affairs, will be speaking in Ottawa on energy policy in the Americas.
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27 June 2011: Excerpts from Remarks by Ambassador Jacobson at the Gas & Oil Expo and Conference North America 2011
"With an ultimate goal of reducing our dependence on oil, we must responsibly develop and produce oil and gas at home, while at the same time leveraging cleaner, alternative fuels and increasing our energy efficiency."
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27 June 2010: The G-20 Summit in Toronto: Acting on Our Global Energy and Climate Change Challenges
At the Toronto Summit, G-20 Leaders reaffirmed their commitment to phasing out fossil fuel subsidies, a groundbreaking agreement at the Pittsburgh Summit which will encourage the conservation of energy, improve our energy security, reduce economically inefficient burdens on budgets, and provide a down-payment on our commitment to reduce greenhouse gas emissions.
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