Canada's Secret Energy Dependency on the United States

Canada's energy relationship with the United States is often viewed as one-sided, with the U.S. relying heavily on Canadian oil and gas exports. However, a closer look reveals that Canada also imports significant volumes of American energy.

In 2025, Canada imported approximately $34.4 billion worth of hydrocarbons from the U.S., including 1.5 million barrels per day of crude oil, natural gas, refined petroleum products, and natural gas liquids. This amount is substantial, but it's still dwarfed by Canada's energy exports to the U.S., which totaled around $157.5 billion in 2025.

The reason for Canada's imports lies in geography. Many of its refineries are located in Ontario and Quebec, far from Western Canadian production areas. Moving oil from Alberta to these regions can be expensive and logistically challenging, making it cheaper to import U.S. crude instead. Additionally, some Canadian refineries prefer lighter crude oils, which are often available from the U.S.

The Enbridge Mainline pipeline, which connects Western Canada with Ontario, passes through the United States. While most of the oil transported on this line is Canadian, a significant portion (104,000 barrels per day) comes from the U.S. This highlights the interconnectedness of the two countries' energy systems and the challenges of separating their interests.