Canadian oil exports to U.S. rise to record high
Much of the increase was driven by refineries in California and Washington
Canadian oil exports to the United States have reached a record high, boosted by the completion of the Trans Mountain expansion pipeline.
Refineries on the U.S. West Coast have been frequent buyers of oil from the pipeline, which began operations in May.
According to the latest data from the U.S. Energy Information Administration (EIA), released on Wednesday, Canadian oil exports to the U.S. rose to 4.3 million barrels per day (b/d) in July. The increase was largely driven by the U.S. West Coast, where imports surged 115% compared to July 2023.
The Trans Mountain expansion tripled oil transport capacity from Edmonton to the Vancouver area, increasing from 300,000 barrels per day to 890,000. The federally owned project, which faced multiple delays and cost overruns, was completed earlier this year.
"Between June and September, the U.S. West Coast accounted for just over half of all maritime crude oil exports from Western Canada, with the rest heading to destinations in Asia," the EIA reported.
Canada's oil production has also reached record levels this year. Tankers carrying oil from the Trans Mountain pipeline have shipped to destinations including California, Washington, China, and South Korea, according to RBC Capital Markets, which tracks shipments leaving Vancouver’s Westridge Marine Terminal.
The Bank of Canada projects a 6.25% average growth in Canada’s total exports over the second half of 2024.
The federal government, which has long committed to selling the pipeline project upon completion, is expected to pursue that plan now that construction is finished.
