Canada's Oil Industry Shifts Towards Asia Amid Middle East Disruptions

Canada's oil industry is shifting towards Asia as a result of supply disruptions in the Middle East. The Trans Mountain pipeline, which carries heavy crude from Alberta to British Columbia's coast, has seen a significant increase in demand for its product. In fact, according to Mark Maki, CEO of the government-owned pipeline operator, about 70% of Canadian crude exported through the Trans Mountain pipeline is headed to Asia.

The $25-billion expansion of the Trans Mountain pipeline, which added 600,000 barrels per day of capacity, has played a crucial role in this shift. The pipeline's operating capacity is now 890,000 barrels per day, and it is expected to reach a total capacity of 1.19 million barrels per day by 2028.

China is the biggest single customer for Canadian heavy crude, with Maki stating that it is used as petrochemical feedstock. Other Asian countries such as India, Japan, South Korea, and Vietnam may also increase their purchases, while Thailand is seen as a potential new buyer.