Canada #1 U.S. Supplier as S&T Fuels Energy Sector

OTTAWA - For the eighth consecutive year, Canada is the main source of oil and natural gas to the United States. In 2006, Canada’s oil exports grew by six percent over 2005, according to the U.S. Energy Information Administration (EIA). The strength of Canada’s energy sector, both the oil sands and offshore, is due in part to years of government support for scientific research and technological innovation (S&T). “Canada and the United States share a unique energy relationship,” said the Honourable Gary Lunn, Minister of Natural Resources. “Canada offers the United States a secure and dependable source of oil and natural gas.”

In 2006, Canada supplied more than 2.3 million barrels of oil per day to the United States. Canadian oil represents 17 percent of U.S. imports and 11 percent of U.S. consumption.

Canadian oil production continues to increase each year, mainly from the oil sands in Alberta, as well as from the Atlantic offshore. Oil sands production now exceeds one million barrels per day and is projected to be three million barrels per day by 2015.

In addition, Canadian natural gas represents 16 percent of U.S. consumption. Natural gas exports from Canada declined slightly in 2006 due to warmer than normal weather and high storage inventories. However, as a share of U.S. imports, Canadian natural gas increased from 85 percent to 86 percent.

“As our exports to the U.S. expand, Canada is committed to making our energy production and use more efficient and environmentally sustainable,” said Minister Lunn.“Our scientific and technological research will continue to play a key role in Canada becoming a clean energy superpower.”

To meet future needs, Canada is developing its large gas and coal bed methane resources, in addition to conventional reserves. Exploration continues in Canada’s Frontier Lands, and projects such as the Mackenzie Gas Pipeline in the North and Deep Panuke in the Atlantic offshore, currently undergoing regulatory review, would bring new supply sources to markets. As well, the government’s new ecoENERGY Initiatives will ensure that Canadians continue to realize in a sustainable manner the economic benefits that Canada enjoys as an energy producer.

This year, Natural Resources Canada is celebrating 100 years of excellence in Government of Canada energy and mining science and technology. Government S&T will continue to assist the energy sector with the development of innovations in energy technology, giving Canadians the advantage they need to succeed.