API Study Determines Cross-Border Infrastructure is Key Component

Tom Wolf’s Bullying of Natural Gas Harms All Pennsylvanians

Centering on petroleum trade growth between the United States and Canada, the American Petroleum Institute (API) released a report discussing benefits and improvements. Increased economic earnings paired with decreased energy costs have been identified as the major success stories, along with a strengthening of security on both sides of the border.

While attending the 2021 Scotiabank CAPP Energy Symposium, the Senior Vice President of Policy, Economics and Regulatory Affairs, Frank Macchiarola, indicated that continuous development and maintenance of this infrastructure remains critical in preserving the U.S.-Canada trade relationship. He stated that energy markets will continue to thrive through additional integration.

“The integration of U.S. and Canadian energy markets has been a win-win for both countries, supporting economic growth and lowering costs for working families while bolstering North American energy security,” said Macchiarola. “None of this would be possible without the cross-border energy infrastructure that enables the safe and efficient transport of these energy resources. Continued development and maintenance of this critical infrastructure are essential to furthering the success and mutual benefits of this important trade relationship.”

Symposium Agenda

Recognized as Canada’s most notorious energy conference, its purpose was designed to serve as a meeting ground for the upstream oil and natural-gas community to meet with a variety of investors. Presentations and panel discussions were scheduled in the following format:

  • Technological Innovation: Lowering GHG Intensity and Improving Sustainability
  • Conventional Oil: Fully Funded and Delivering Free Cash Flow=Better Returns for Shareholders
  • What Does the Future Hold for Canadian Natural Gas?
  • Royalty Companies: Stable Business Models in Volatile Markets
  • The Future of Natural Gas in Canada
  • State of the Industry and Canada’s Economic Recovery

Examples of Integration

Seeing the benefits of a combined partnership of sorts, the petroleum markets of both the U.S. and Canada are continually experiencing more and more integration. Over the last ten years, petroleum liquid, which makes up approximately 20% of U.S.-Canada trade flow has almost doubled when it comes to trade. In 2019, Eastern Canada’s crude imports included a 72% contribution of the U.S. crude, while in return, Canada contributed 58% of the U.S.’s heavy crude imports in the same year.

Economical Gratification

States providing homes to refineries have seen a significant and positive economic impact. Studying historical data, the 2019 Gross State Product experienced over a $3.2 billion increase in the following:

  • Illinois at $2.2 billion
  • Indiana at $626 million
  • Michigan at $418 million
  • Minnesota at $773 million
  • Oklahoma at $512 million
  • Texas at $444 million

Securing Futures

With a revolving commitment to their relationship, the United States and Canada both benefit with high-end yields. Both countries’ petroleum markets experience a shoring up which leads to security, and each benefit from the other on multiple levels.

Between 2010 and 2019, U.S. refiners reduced crude oil imports supplied by OPEC by 70%. This was directly made possible by an increase in Canadian imports paired with increased domestic production.

As in any relationship, it should be mutually beneficial. Canada, too, has latched on to cross-border infrastructure and support. They increased their crude imports from Uncle Sam and, in turn, have been able to decrease their dependence on OPEC by an impressive 68%.

Continuing to foster this energy relationship will only benefit North American crude. Innovation, technology and commitment will all be tools used to further increase the economic gains of crude oil in the future while continuing to decrease foreign dependency.



Nick Vaccaro is a freelance writer and photographer. Besides providing technical writing services, he is an HSE consultant in the oil and gas industry with eight years of experience. He also contributes to Louisiana Sportsman Magazine and follows and photographs American Kennel Club field and herding trials. Nick has a BA in Photojournalism from Loyola University and resides in the New Orleans area. 210-240-7188 [email protected]


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