Atlantic Canada's Crude Oil Conundrum

Atlantic Canada is facing energy security challenges due to its reliance on imported crude oil. Prime Minister Mark Carney identified affordability, security of supply, and climate change as key issues in the Canadian energy crisis. While wildfires and floods have exacerbated these problems, Atlantic Canada's primary concern is security of supply.

The Saint John refinery, the only one in the region, relies heavily on imported crude oil from a limited number of countries. In 2005, Norway was the largest supplier, followed by Saudi Arabia. By 2015, the U.S. had become the dominant source, and Saudi Arabia was replaced by Nigeria. Today, the U.S. supplies over half of the refinery's crude oil.

Reducing reliance on the U.S. is crucial to ensuring energy security in Atlantic Canada. Western Canadian crude oil could be an alternative, but numerous attempts have failed due to logistical and environmental concerns. The Energy East pipeline proposal was withdrawn in 2017, and there appears to be little likelihood of future projects.

Newfoundland and Labrador's offshore Jeanne d'Arc Basin produces about 4.5% of Canada's crude oil. Most of this production goes to the U.S., but exploration further offshore has found additional reserves of light crude oil. The Bay du Nord project is expected to reverse the decline of offshore production in the early 2030s.