CAPP Statement on the 30-day pause from U.S. tariffs
“CAPP is pleased the tariffs on Canadian energy and all Canadian products will be paused to allow for further negotiations with the United States. Our integrated energy infrastructure delivers the reliable, affordable and secure energy Americans and Canadians need every, single, day.
Combined, Canada and the U.S. produce about 30 percent of the world’s natural gas and about 25 percent of the world’s oil. If we continue to stick together, the United States and Canada could be the most dominant energy superpower on the planet.
Instead of tariffs, we should be working together to expand our energy trade and grow oil and gas production from both countries with the goal of exporting more Canadian and American energy to our global allies. More exports from us means our allies are using less oil and less natural gas from non-allied countries like Russia, Iran, and Saudi Arabia.
Working together on expanding energy production and trade means everybody wins. It means continued access to reliable and affordable energy for Canadians and Americans and a stronger, more secure, North American economy.”
• Lisa Baiton, CAPP President and CEO
Summary of Canadian Imports of US Crude Natural Gas and Refined Products
- Parts of Canada are dependent on the US for imports of crude oil, natural gas, and refined products. This dependence poses a risk that Canadian retaliatory measures, such as export restrictions on US exports, could lead to similar actions from the United States, resulting in energy shortages and higher prices for Canadians. Regions across the country would be impacted.
- Ontario and Quebec are particularly vulnerable; about half of the natural gas they consume is imported from the United States. Additionally, Ontario and Quebec’s Montreal refinery depend entirely on crude oil delivered from the United States, with no immediate alternatives available. While there are options to deliver more Canadian natural gas via the Canadian Mainline, the pipeline would likely require capital investment to materially increase its flow rate. Line 9 could be reversed (once again) to provide some supply from offshore into Montreal and Ontario, but this cannot be done in the short term.
- Alberta imports over 200,000 barrels per day of light condensate to blend with heavy bitumen for transportation. A curtailment of these imports could increase costs for heavy oil producers and could cause operational issues that constrain production.
- British Columbia, Quebec, and Ontario also depend on refined product imports, with limited alternatives. Due to this integration, Canada must consider the potential for energy shortages if the US curtails its deliveries to Canada.
Canada should build a tariff proof economy
The benefits of North American energy interdependence
