Energy Trade Between U.S. and Canada Reaches Record High During 2022: EIA

The value of energy transacted between the U.S. and Canada reached a record high in 2022, exceeding the previous record high in 2008, according to an Aug. 14 report from the U.S. Energy Information Administration. The increase in the value during 2022, can be attributed to high energy commodity prices. Trade value consists of both imports and exports between the countries and is driven by both energy commodity prices and volumes transacted.

Global energy commodity prices reached record highs during 2022, following the Russian invasion of Ukraine in February 2022. The invasion led to a structural shift in global trading dynamics and consequently higher energy prices across the globe.

Volumes transacted between the U.S. and Canada during 2022, were similar to traded volumes between the countries in 2021.However, energy commodity prices differed and the higher price in 2022 led to trade totalling $190 billion when adjusted for inflation, compared to $134 billion in 2021 and $178 billion in 2008.

The value of U.S. energy imports when adjusted for inflation from Canada was recorded at $156.3 billion, whilst the value of U.S. energy exports to Canada was $33.8 billion. Crude oil, natural gas and petroleum products were the commodities which impacted the energy trade value significantly during 2022.

U.S. crude oil imports from Canada during 2022 averaged 3.7 million barrels per day, or mbpd, and were similar to volumes from 2021. The value of this imported volume however, increased by 38 percent in 2022 to $113 billion compared to the previous year. U.S. crude oil exports to Canada averaged 0.35 mbpd in 2022, a marginal decline compared to 2021. Despite the volume decline, the value of U.S. crude oil exports increased by 43 percent in 2022, totalling $11.9 billion.

U.S. petroleum product imports from Canada during 2022 averaged 0.58 mbpd and were similar to volumes from 2021. The value of this imported volume however, increased by 35 percent or $22 billion in 2022 compared to the previous year. U.S. petroleum product exports to Canada, averaged 0.54 mbpd in 2022 and were similar compared to 2021. Despite the same volume, the value of U.S. petroleum product exports increased by 36 percent in 2022, compared to 2021.

U.S. natural gas imports from Canada average 7.6 billion cubic feet per day, or bcf/d in 2021 and 2022. However, the value of these imports was 76 percent higher in 2022. In similarity, U.S. natural gas exports averaged 2.5 bcf/d in both 2021 and 20202, but the value was 100 percent higher, totalling $4.1 billion in 2022.