Page 4 - NorthAmOil Week 11 2022

NorthAmOil COMMENTARY NorthAmOil

Canada considers ways

to boost crude exports

Canada is examining ways of boosting exports of crude in a

bid to help supply challenges caused by countries trying to

reduce their reliance on Russian oil

NORTH AMERICA CANADA is looking at ways to boost its crude ways to increase utilisation rates on existing
exports to the US – and potentially onwards pipelines. And pipeline operator Enbridge,
WHAT: to other countries from the US Gulf Coast. whose Mainline accounts for most of Canada’s
Canada is looking at ways This comes as concerns mount about supply crude exports to the US, said in a recent state-
to boost its crude exports challenges in the wake of Russia’s invasion of ment that it was having talks with Ottawa on
to the US and beyond. Ukraine. “how the industry can help relieve the current
The US has banned imports of Russian crude, crisis”.
WHY: which represents a relatively small amount of “We are looking at whether our pipeline net-
Supply challenges could its total oil imports but will nonetheless need work is fully utilised,” Canadian Minister of Nat-
arise as various countries to be replaced. And the European Union has ural Resources Jonathan Wilkinson told Reuters
seek to lessen their announced its intention to dramatically reduce last week. He added that the government was
reliance on Russian oil. its reliance on Russian oil and gas. Canada is aiming to achieve an “incremental” increase in
keen to see how it can help. exports to Europe.
WHAT NEXT: However, Canada’s options for ramping up Separately, the Canadian Press reported on
Ottawa believes that in crude exports are relatively limited – hence March 14 that Wilkinson was in discussions
the longer term it will the recent complaints about US President Joe with Group of Seven (G7) partners and energy
be more realistic to Biden’s cancellation of the Keystone XL pipe- industry executives figuring out how best to
collaborate with Europe line project in 2021 by certain members of the help Europe reduce its reliance on Russian oil
on renewable energy. industry and its supporters. But with no major and gas.
new pipeline capacity from the oil sands to the “In the context of the discussions, not just
US planned, Canada is reportedly studying with the Americans, but the Europeans as well,

Canadian oil is
transported to the US
via pipeline, and a
small proportion is then
re-exported from the
Gulf Coast.

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