ARCHIVED – 2014 Oil Exports and Imports Summary

This page has been archived on the Web

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

  2014 2013 2012 2011 2010
Volumes (10³m³/day)
ExportsFootnote 1 453.7 415.3 372.6 340.0 311.7
Less ImportsFootnote 2 86.4 102.1 115.8 108.0 122.5
Net Exports 367.3 313.2 256.8 232.0 189.2
Average Price (Cdn$/m³)
ExportsFootnote 3 552.56 539.29 526.31 551.22 456.68
ImportsFootnote 4 639.38 703.29 701.45 692.76 515.77
Value (Cdn$ billions)
ExportsFootnote 5 91.5 81.8 71.7 68.4 52.0
ImportsFootnote 6 20.2 26.2 29.0 27.1 23.3
Net Revenue 71.3 55.6 42.7 41.3 28.7

Sources: NEB, EIA, Bank of Canada Exchange Rate, Statistics Canada (Rounded numbers)

  • The volume of crude oil exports has increased over the past 5 years, while imports have typically been on a downward trend (see Figure 2).
  • The 2014 average export price was $552.56 per m³, an increase of nearly 2.5 per cent or $13.27 per m³ from the average export price of $539.29 in 2013.
  • The 2014 average import price was $639.38 per m³, a decrease of approximately 9.1 per cent compared with the average import price of $703.29 per m³ in 2013.
  • Oil export revenue for 2014 was approximately $91.5 billion, an increase of $9.7 billion or 11.9 per cent from 2013. Oil export revenue has climbed over the past five years with net oil revenue in 2014 estimated at $71.3 billion.
  • The import value of oil in 2014 totaled $20.2 billion, a decrease of $6.0 billion or 22.9 per cent from 2013.

Figure 1: Canadian Oil Export Volumes, 2005-2014

Figure 1: Canadian Oil Export Volumes, 2005-2014

Source: NEB source. (Rounded numbers)

  • Oil exports in 2014 continued a decade-long pattern of growth, with 2014 exports at 453.7 thousand cubic metres per day (approximately 2.85 million bbl/d), growing from 258.8 thousand cubic metres per day (just over 1.6 million bbl/d) from 2005 levels, an increase of approximately 75.3 per cent.
  • Oil exports increased in 2014 compared with 2013, growing by 38.4 thousand cubic metres per day (m³/d), which is equivalent to roughly 241.5 thousand barrels per day (bbl/d). This is an increase of over 9.2 per cent.

Figure 2: Canadian Oil Import Volumes, 2005-2014

Figure 2: Canadian Oil Import Volumes, 2005-2014

Sources: EIA Data, Statistics Canada Data, NEB sources. (Rounded numbers)

  • Oil imports into Canada decreased by more than 15.3 per cent in 2014 compared with 2013, to 86.4 thousand m³/d (543.5 thousand bbl/d).
  • Oil imports have been on a downward trend for the past decade, with the exception of 2012. The increase in 2012 oil imports was due to additional imports of diluent and/or condensate (light oils) to facilitate movement of heavier oil in pipeline transportation systems.

Figure 3: Oil Net Export Volumes, 2005-2014

Figure 3: Oil Net Export Volumes, 2005-2014

Source: NEB source. (Rounded numbers)

  • In 2014 net oil exports were 367.3 thousand m³/d (2.3 million bbl/d), an increase of more than 17.2 per cent or 54.1 thousand m³/d over 2013 levels.
  • Over the past decade, net oil exports have increased more than 209 per cent. Net exports have been on an upward trend, rising from 118.7 thousand m³/d in 2005 (746 thousand bbl/d) to 367.3 thousand m³/d in 2014 (2.3 million bbl/d).

Figure 4: Export Volumes by Destination, 2005-2014

Figure 4: Export Volumes by Destination, 2005-2014

Source: NEB source. (Rounded numbers)

  • In 2014 Canadian oil exports to the US East Coast (PADD I) increased by 2.9 million m³ (18.3 million barrels) compared with 2013. PADD I’s market share in 2014 of Canada’s total crude oil exports was 8.8 per cent, up from 7.5 per cent in 2013.
  • The US Midwest (PADD II) continued to be the largest market for crude oil exports. The region received a total of approximately 110.0 million m³ (roughly 692.1 million barrels) which is 66.5 per cent of Canada’s total crude oil exports in 2014. This represents a volumetric increase of just over 6.9 million m³ (or roughly 43.7 million barrels) from 2013.
  • The US Gulf Coast (PADD III) showed a significant increase in exports compared with 2013. In 2014, 6.5 per cent or 10.8 million m³ (nearly 68.0 million barrels) of Canada’s crude oil exports were transported to this market.
  • In 2014, PADD IV (US Rockies) showed slight growth volumetrically compared with 2013, with oil exports totaling over 13.9 million m³ (nearly 87.9 million barrels). The market share for PADD IV was approximately 8.4 per cent of Canada’s total crude oil exports in 2014.
  • The US West Coast (PADD V) export volumes increased slightly by 752 thousand m³ (4.7 million barrels) compared with 2013. In 2014, PADD V’s market share of Canada’s crude oil exports was 7.0 per cent.
  • Non-USA exports in 2014 totaled 4.6 million m³ (almost 29.1 million barrels), down slightly from 4.8 million m³³ (approximately 30.3 million barrels) in 2013. In 2014, the Non-USA market share of Canada’s crude oil exports shrunk to 2.8 per cent from 3.2 per cent market share in 2013.

Commentary

The 2014 oil market was characterized by significant changes. China topped the United States of America (USA) to become the world’s largest importer of crude oil.Footnote 7 Also, the USA overtook Russia and Saudi Arabia to become the world’s largest oil producer, due in large part to crude oil extraction from shale rock.Footnote 8The shale revolution propelled the United States into a leadership role in oil production, which had a significant impact on global oil trade. The USA was still the world’s largest consumer of refined petroleum products, and the availability of significant amounts of inexpensive crude from domestic shale plays allowed it to refine domestic crude oil and export increased volumes of refined products such as gasoline and distillates.Footnote 9 For greater clarity, currently USA exports of refined petroleum products do not fall under the ban applicable to USA exports of crude oil.

Average world crude oil prices took a tumble in 2014, after years of stability. Various sources noted significant fluctuations in price. West Texas Intermediate (WTI) moved from a high of roughly $105.79 USD per barrel in June, to a decline of more than 40 per cent by the end of the year, to approximately $59 USD per barrelFootnote 10. Globally, changes in price during 2014 are primarily due to lower global demand, turmoil in Iraq and Libya, OPEC unable to reach a consensus in late 2014 on curbing supply, and the USA becoming the largest oil producer. This latter change meant the U.S. imported much less which contributed to a situation of global spare supply.Footnote 11

The majority of crude oil moves by pipeline in Canada, but other export transportation systems also exist including rail, marine and truck. Canadian crude oil exports by rail in 2014 continued to climb, to approximately 9.4 million m³ (59.1 million barrels), an increase of over 27 per cent from 2013.

To access new markets, pipeline projects to the East, West and South are being developed to allow diversification of markets for Canadian crude oilFootnote 12. The existing pipeline capacity was fully utilized and lengthening timelines for additional pipeline capacity resulted in an increase in the use of other modes of transportation.Footnote 13Increased transportation of crude oil by rail and a number of derailments led to the review of regulations around transporting combustible liquids. One incident that was particularly devastating was the derailment in Lac- Mégantic, Quebec in July 2013. Since that time, Canada and U.S. governments have been working towards new legislation to strengthen tank car and railway safety.Footnote 14

In terms of conventional and unconventional crude oil, technological advances continued including increased use of horizontal and multi-stage fracturing drilling techniques, as well as new innovations in the oil sands industry. This resulted in production growth in geological areas where it was previously deemed uneconomic.

Date modified: