Vive Le Canada

Canada will stay top U.S. oil supplier for 20 years
Date: Wednesday, March 07 2007

Canada will stay top U.S. oil supplier for 20 years
Ashok Dutta
CanWest News Service; Calgary Herald
Tuesday, March 06, 2007

CALGARY -Canada - which in 2005 replaced Saudi Arabia as the single-largest supplier of energy to the U.S. - will continue that position over at least the next two decades, thanks to the multi-billion dollar oilsands developments in Alberta.

"The projects in Fort McMurray and Athabasca will ensure that Canada remains in the top spot until 2030," Guy Caruso, administrator of the U.S. Energy Information Administration, said Monday on the sidelines of an industry conference in Calgary.

According to EIA estimates, Canadian exports to the U.S. will reach 2.6 million barrels per day by 2030, compared with current levels of just over one million bpd.

"Oilsands will account for a vast majority of this incremental exports. The remaining volumes will be sourced from the conventional oil sources in Canada," he said.

Since 9/11, the U.S. has been pursuing a policy of reducing reliance on Middle East oil. Until recently, Saudi Aramco was the single-largest supplier of crude oil to the U.S. under a long-term deal offering a favourable lifting and delivery price. That scenario has changed, however.

In an address to the U.S. Congress late last year, President George W. Bush spoke of the need to decrease 75 per cent dependence on Middle East oil due to volatility in the region.

"We will see a growth in supply from not only Western Canada, but also the Middle East. However, the increased demand will be spread over several Arabian Gulf suppliers and not be solely reliant on Saudi Arabia. A majority of Saudi oil is destined for the Asian markets, particularly China and India," Caruso said.

The U.S. is the world's largest consumer of crude oil, estimated to be 22 million bpd. According to the EIA, demand is projected to grow 30 per cent over the next 25 years with fossil fuels catering to a bulk of the new energy requirements.

This article comes from Vive Le Canada

The URL for this story is: