The American Petroleum Institute released a new report examining how growth in cross-border petroleum trade between the United States and Canada has led to the further integration of North American energy market including direct benefits for Oklahoma, delivering economic benefits, lowering consumer energy costs and strengthening energy security on both sides of the border.
The report indicated that in 2019, Oklahoma benefitted to the tune of $512 million in refinery business.
The analysis, which API Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola highlighted in remarks before the 2021 Scotiabank CAPP Energy Symposium earlier Tuesday, underscores how continued development and maintenance of cross-border energy infrastructure will be critical to sustaining this trade relationship and further integrating North American energy markets.
“The integration of U.S. and Canadian energy markets has been a win-win for both countries, supporting economic growth and lowering energy costs for working families while bolstering North American energy security,” API Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola said. “None of this would be possible without the cross-border energy infrastructure that enables the safe and efficient transport of these energy resources. Continued development and maintenance of this critical infrastructure is essential to furthering the success and mutual benefits of this important trade relationship.”
U.S. and Canadian petroleum markets are increasingly integrated:
- U.S.-Canada petroleum liquids trade nearly doubled over the past decade.
- Petroleum liquids trade represents 10 to 20 percent of total U.S.- Canada trade flow.
- U.S. crude oil made up 72 percent of Eastern Canada’s crude imports in 2019.
- Canada supplied 58 percent of US heavy crude oil imports in 2019.
Integration of U.S. and Canadian petroleum markets strengthens the energy security of both countries:
- Increased imports of Canadian crude oil in tandem with booming domestic production have allowed U.S. refiners to significantly reduce crude oil imports from OPEC 70 percent from 2010 to 2019.
- Increased imports from the U.S. have enabled a 68 percent decline in Eastern Canada’s imports from OPEC.
Integration of U.S. and Canadian petroleum markets supports economic benefits for the U.S.:
- Economic benefits accrue to refiners in states throughout the U.S., enabling a more than $3.2 billion increase in Gross State Product in 2019, including:
- Illinois: $2.2 billion
- Minnesota: $773 million
- Indiana: $626 million
- Oklahoma: $512 million
- Texas: $444 million
- Michigan: $418 million
The full study can be found here and key takeaways here.
Source: API press release