U.S. Crude Oil Imports from Canada Hit Record High During July 2024: EIA

U.S. crude oil imports from Canada reached a record high of 4.3 million barrels per day (b/d) during July 2024, according to an Oct. 30 report published by the U.S. Energy Information Administration. The increase in U.S. crude imports can be attributed to the expansion of Canada’s Trans Mountain pipeline.

Capacity at the Trans Mountain Expansion (TMX) increased nearly threefold compared to the pipeline’s 300,000 b/d capacity, when it became operational during May 2024. The pipeline transports crude oil from oil sands in landlocked Alberta to Canada’s Pacific Coast for export to new customers in Asia or along the U.S. West Coast.

Historically, the majority of the crude oil exports from Alberta usually end up at refiners in the U.S. Midwest through pipeline or to the U.S. Gulf Coast by rail shipments.  Since TMX began operations, data shows that U.S. West Coast refiners have been key buyers of the new volumes. The U.S. West Coast imported 498,000 b/d of crude oil during July 2024, a record high for the region and 115 percent higher compared with the same period in the previous year.

U.S. crude oil imports from Canada have been on an upward trend over the last decade. The increase in U.S. crude oil imports from Canada can be attributed to higher crude oil production in Canada and geographic proximity. Imports from Canada to the U.S. rose on average by four percent yearly, from 2013 to 2023. Canadian crude oil exports to the U.S. totaled 24 percent of U.S. refinery throughput during 2023, up from 17 percent during 2023. Geographic closeness permits Canadian pipelines to transport crude oil from the western provinces, mostly from Alberta’s huge crude oil production region to refineries in the U.S. Moreover, inland regions of the U.S., particularly the Rocky Mountains and Midwest are closely linked to Canada’s oil markets via rail networks and pipelines. Furthermore, takeaway capacity exists for shipments to the Gulf Coast.