Embassy of the United States Ottawa, Canada

As prepared for delivery, 7 June 2011

America's Energy Security

On March 30, President Obama delivered an address dedicated to the topic of America's energy security in which he laid out some fundamental truths and paths forward.

The President underscored that we need to make ourselves more secure and control our energy future by harnessing all of the resources that we have available and embracing a diverse energy portfolio.

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. We need to develop biofuels; expand the use of natural gas, other renewable energies and public transport; and continue to develop more efficient cars and trucks.

And beyond our efforts to reduce our dependence on oil, we must focus on expanding cleaner sources of electricity -- keeping America on the cutting edge of clean energy technology so that we can build a 21st century clean energy economy.

But, as the President acknowledged, the fact of the matter is that for quite some time, America will remain dependent on fossil fuels to make its economy work.

Canada: A Pillar of U.S. Energy Security

When it comes to the energy we import from other nations, we look to neighbors and friends like Canada, with its stable and steady supplies.

The U.S. and Canada enjoy the largest energy trade relationship in the world.

Canada is the single largest foreign supplier of energy to the U.S., providing over 20% of U.S. oil imports and over 80% of natural gas imports. Alberta alone exports approximately 1.4 million barrels per day of crude oil to the U.S. supplying 15% of U.S. crude oil imports, or over 7% of U.S. oil demand. New technology will allow even more of Canada's oil sands in Alberta to become economically viable over the coming years. Alberta also exports almost 2 trillion cubic feet of natural gas to the U.S. annually, supplying 47% of U.S. natural gas imports and meeting just over 7% of U.S. natural gas demand.

Canada and the U.S. operate an integrated electricity grid and they provide almost all of each other's electricity imports. Saskatchewan uranium also helps fuel U.S. nuclear power plants.

The bottom line is that we are truly a North American energy market.

Challenges Ahead

There are, of course, significant environmental challenges related to fossil fuel extraction and processing. In the case of oil, this will be increasingly the true as the average barrel of crude gets heavier and heavier.

We are aware of the progress already made to address some of the environmental impacts in Alberta's oil sands, and are encouraged by new investments aimed at further increasing the efficiency and sustainability of the industry.

Additional improvement is necessary, as our continuing responsibility is to do more to lessen the greenhouse gas emissions and impacts on land, water, and health from extraction and processing of fossil fuel sources.

And I can confirm that the U.S. Administration and American businesses are committed to working collaboratively with Canada to stem carbon emissions in a way that promotes sustainable economic growth and increases North American energy security.

U.S. Business Input in the Canadian Energy Sector

As evidenced by the impressive attendance at this 2011 Gas and Oil Expo, Canada's energy sector has enormous requirements for goods, services and technologies that make the industry run, and run increasingly efficiently and effectively.

We know that there are many American companies currently contributing to the energy sector here through their impressive human and financial capital, technologies, and innovation.

In fact, the Canadian Association of Petroleum Producers has compiled a list of over 900 American businesses providing inputs into the Canadian energy sector.

And we believe there are even more opportunities for U.S. companies to contribute to everything from engineering solutions to environmental remediation. As such, we are stepping up our efforts to assist our industries in identifying and capitalizing on those opportunities.

Canada-U.S. Regulatory Cooperation in the Oil and Gas Sector

We recognize that there are things our governments can do to facilitate greater trade between our countries in the energy sector, as well as in other key sectors of our economies. Industry leaders and other stakeholders are holding discussions focused on the competitive impacts of existing regulatory differences in the energy sector, lessons learned from past efforts in support of regulatory harmonization, and a potential pathway forward for our integrated industries.

This comes in the context of a visionary initiative announced by President Obama and Prime Minister Harper on February 4 of this year.

Our two leaders agreed to a vision for managing our shared responsibilities, not just at the border but "beyond the border." That means working more closely to improve border security with better screening, new technologies, and information sharing among law enforcement agencies to identify and defuse threats early.

It also means finding new ways to improve the free flow of goods and people. Because with over a billion dollars in trade crossing the border every single day, smarter border management is key to our competitiveness, our job creation, and our prosperity.

The U.S. and Canada are now holding consultations to identify priority areas for regulatory cooperation and formulate an action plan.

To conclude, the United States and Canada have the closest energy relationship in the world. And the U.S. sees Canada as a pillar of our energy security.

We will continue to work closely with Canada to address environmental concerns while securing reliable energy supply for the North American continent -- something to which Canada -- and specifically Alberta -- contributes mightily.