Get the Facts: Energy

Canada is a proven partner in sustaining North American energy and economic security. Canada is the U.S.'s largest and most reliable source of energy. In 2004, Canada's energy exports to the U.S. were valued at over $65 billion (US$50 billion). Canada supplied 16 percent of U.S. imports of oil (crude and refined)- more than any other country at over two million barrels a day. For crude oil only, in 2004, Canada surpassed Saudi Arabia as the leading supplier to the United States. Canada provided 85 percent of all U.S. natural gas imports and approximately 27 percent of the uranium used in U.S. nuclear power plants. Canada supplies 96% of U.S. electricity imports. Canada and the U.S. also have a strong common interest in promoting energy efficiency and in developing and deploying new and cleaner energy technologies. Canada and the U.S. have a strong energy relationship that will continue to grow in the coming years.

Canada's large landmass and off-shore areas offer a wealth of energy resources.

• As of January 1, 2005 Canada's proven reserves were approximately 179 billion barrels -- 4.3 billion barrels of conventional oil and 174.5 billion barrels from Alberta's oil sands -- and rank second only to those of Saudi Arabia.
• This 174.5 billion barrels of oil sands is but a small portion of the oil sands that is ultimately recoverable.
• Only 27 percent of Canada's ultimate potential for conventional natural gas, which is estimated at greater than 500 trillion cubic feet, has already been produced. Much of the remaining resource is located in our north and offshore.
• Our two-way trade in electricity promotes lower costs and a stable supply.
• Canada is at the forefront of new energy technologies development, including fuel cells, bioenergy, pipelines, and high-voltage transmission technologies.

The Canada-U.S energy trade relationship is a North American success story.

• The North American Free Trade Agreement (NAFTA) sets out clear, transparent and predictable rules for energy trade to the benefit of both the U.S. and Canada.
• Through our joint commitment to open markets, Canada and the U.S. encourage investment in our energy supplies, infrastructure and technologies, strengthening our future energy security.
• Canada and the U.S. are working together under the Smart Border Declaration to conduct vulnerability assessments of selected shared energy infrastructure, including pipelines, electricity transmission systems and dams.
• Through the new Security and Prosperity Partnership of North America (2005), Canada, the U.S., and Mexico are also taking action to create a policy environment that will promote the sustainable supply of energy in North America.

Together, we're meeting the energy challenges of the 21st century by:

• increasing the openness of our energy markets and reducing impediments to the free flow of investments in energy supply and infrastructure;
• enhancing the security and integrity of our energy infrastructure to enable the continued flow of oil, gas and electricity; and
• investing in R&D to improve energy efficiency and to develop new and cleaner energy technologies through cooperative efforts in the areas of carbon dioxide capture and storage, next generation nuclear power and the hydrogen economy.

In 2004, Canadian energy exports to the U.S. were valued at over US$50 billion.

Canada supplied the U.S. with:

• 85 percent of its natural gas imports; or 17% of total U.S. consumption
• 96 percent of its electricity imports
• 27 percent of its uranium used in the production of nuclear power and
• 16 percent of its imports of crude and refined oil products - more than any other country at over 2 million barrels per day.

U.S. energy security depends upon reliable energy supplies. Canada is the largest, safest and most secure supplier of energy to the U.S., and we are right next door.

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