Canada's Surprising Dependency on American Oil and Gas

Canada is often seen as an energy-exporting powerhouse, but parts of the country remain surprisingly dependent on American crude oil and natural gas. According to recent data, Canada imported approximately $34.4 billion worth of hydrocarbons from the United States in 2025, with the majority coming from U.S. crude oil.

Of the hydrocarbons imported from the United States, crude oil represented 30.1%, while natural gas accounted for 31.1%. The imports were valued at approximately $17.8 billion on crude oil alone. This dependency is largely due to geographic reasons, as most Canadian refineries are located in Ontario and Quebec, which are closer to U.S. production areas than Western Canada.

Another complication in describing Canadian energy independence is the fact that much of the infrastructure connecting Western Canada with Ontario passes through the United States. The Enbridge Mainline, for example, runs from Edmonton to Sarnia via southern Manitoba and the American Midwest, making it difficult to separate the two countries' energy-security interests.

The integrated North American energy system works in both directions, with Canada exporting approximately $157.5 billion worth of crude oil, refined petroleum products, natural gas, and natural gas liquids to the United States in 2025. However, this significant trade relationship is not numerically equal, with Canada's hydrocarbon exports being worth more than four and a half times its imports from the United States.