Infrastructure and Transportation

Transporting Canada's Energy
Canada's oil and natural gas producers continue to build new markets for their expanding production. Product is transported three ways: pipeline, marine transport and rail.

Diversifying our markets is vital to ensure Canada receives full value for its natural resources. New market opportunities include Eastern Canada, the U.S. and growing economies in Asia.

Crude oil

Canadian crude oil producers continue to build new markets for their expanding production.

  • Eastern Canada imported about 558,000 barrels/day from January to July 2016.
  • The West Coast is a critical outlet for Canadian oil to reach customers in Asian markets.
  • Even with increased domestic supply, the U.S. will need oil imports to meet its energy demands. As long as the U.S. is importing oil, Canada is the best supplier.

Natural gas

Traditional markets for western Canadian natural gas are changing: exports to the U.S., Canada's only export market for natural gas, have dropped 16 per cent over the past five years and are projected to drop further because of the U.S.'s own growing supply.

With exports to the U.S. declining, Canada's industry is exploring new markets for Canadian natural gas. Several liquefied natural gas (LNG) export terminals have been proposed on Canada's West Coast. Asian energy demand continues to grow, with China's demand for natural gas growing five per cent annually.

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