Without NAFTA, where will you get your oil from? Canada and Mexico are the largest suppliers of oil to USA. Without NAFTA, Canada and Mexico will no longer be required to sell any oil to USA. They can and will sell to China instead.
You will have to rely on Nigeria, Saudi Arabia and Venezuela. Is the trade-off worth it?
What about your other energy supplies that come from Canada? If you choose to discontinue the existing relationship, what is your backup plan for the resulting energy shortfalls?
Canada–U.S. energy relations
Canadians and Americans share the closest energy relationship in the world. Energy infrastructure—including oil and gas pipeline networks and electricity grids—is tightly integrated. Canada is the United States’ largest and most secure supplier of oil, natural gas, electricity and uranium.
In 2007:
* Canadian exports accounted for 9% of total U.S. energy demand.
* Two-way trade in energy totalled $100 billion.
* Cross-border direct investment in the energy sector was worth nearly $90billion.
* Canada exported 1.8 million barrels of oil per day to the United States
* Canada provided 82% of all U.S. natural gas imports, representing 16% of U.S. consumption.
* Canada and the United States supplied each other with almost all of our respective electricity imports through our integrated electricity grid.
* Renewable electricity, including hydroelectric power, accounts for nearly two-thirds of Canada’s electricity generation, and is a significant component of Canada’s electricity exports to the United States.
* Canada supplied approximately one-third of the uranium used in U.S. nuclear power plants.
Oil
Canada: the largest oil supplier to the United States
Since 1999, Canada has been the largest supplier of U.S. crude and refined oil imports. In 2007, Canadian crude oil and petroleum products represented 18% of U.S. crude oil imports, at nearly 2.5 million barrels per day. From 2005 to 2007, the volume of Canadian crude oil exports to the United States increased by 7.4% per year.
The bulk of this increase was due to expanded production in Alberta, and this trend is expected to continue. In 2007, Canada’s total oil production was 3.4 million barrels a day, and output is rising.
Canada’s reserves represent a safe, secure and long-term supply of oil for North America
* Canada has approximately 179 billion barrels of proven oil reserves—the world’s second-largest reserves after those of Saudi Arabia. Over 95% of these reserves are found in oil sands deposits.
* Petroleum development is taking place not only in the oil sands, but also in Canada’s north and in the Atlantic offshore region.
* U.S. firms are significant investors, producers and developers of new technology in Canada’s oil sector. Similarly, Canadian oil companies are major investors in the U.S. petroleum industry, providing jobs and income for Americans.
* As oil exports from Canada increase, pipelines and refineries are expanding in the United States, representing more investment and more jobs for Americans.
Sustainable development of the oil sands
Like all energy production, oil sands production has an environmental impact, in this case particularly from greenhouse gas (GHG) emissions. Canada, Alberta and the industry have already taken action to reduce GHG emissions from oil sands production. On a per barrel basis, GHG emissions have fallen by 32% since 1990.
Canada is also investing to ensure that we create the emission reduction pathways we need, through technology such as carbon capture and sequestration. Canada and the United States have already collaborated successfully. One such project, Weyburn-Midale, is the largest carbon dioxide (CO2) injection project in the world and has resulted in the sequestration of approximately 10 million tonnes of CO2 since 2000.
For more information about the oil sands, please visit:
* Government of Alberta
* Canadian Association of Petroleum Producers
Electricity
Canada: the largest electricity supplier to the United States
Canada and the United States share a fully integrated electricity grid and supply almost all of each other’s electricity imports. Canada is a major supplier of electricity to New England, New York, the Upper Midwest, the Pacific Northwest and California.
Canada is one of the world’s largest producers of hydroelectricity, producing about 13% of the world’s total. Hydroelectricity represents about 60% of Canada’s total electricity generation—that’s over three times the global average.
In fact, 77% of Canada’s electricity comes from sources that do not emit greenhouse gases.
Canadian electricity represents a reliable source of power and is a key element in obtaining long-term North American energy security and addressing our collective climate change challenges.
Natural Gas
Canada: the largest natural gas supplier to the United States
Canada is the world’s third-largest producer and second-largest exporter of natural gas.
In 2007, Canada provided 82% of all U.S. natural gas imports, representing 16% of U.S. consumption.
Canadian exports of natural gas go primarily to the U.S. Northeast, Midwest, Rocky Mountain, California and Pacific Northwest regions.
Canada is continually investing in natural gas exploration and infrastructure.
* Only 27% of Canada’s potential conventional natural gas production, estimated at more than 500 trillion cubic feet, has been produced.
* Industry is developing new pipeline projects to access arctic resources, including in the Mackenzie Delta.
* Open, well-regulated markets and sound, stable and cooperative policies facilitate natural gas investments and strengthen North American energy security.
Nuclear Energy
Canada has the world’s largest known deposits of high-grade natural uranium and is the world’s leading producer of uranium for nuclear energy, accounting for roughly one-third of the total global mine production. The uranium mined in Canada contains more energy potential than does all of our annual oil and natural gas production combined.
Canada supplies approximately one-third of the uranium used in U.S. nuclear power plants. That is enough to provide over 5% of the total U.S. supply of electricity.
About 15% of Canada’s electricity comes from nuclear power plants, based primarily in Ontario
