Market Snapshot: Almost all Canadian crude oil exports went to the United States in 2023

Release date: 2024-08-21

Crude oil exports continued to grow in 2023, reaching a record high of 4 million barrels per (MMb/d), an increase of 3% from 2022. This growth was supported by record high Canadian oil production in 2023. In 2023, crude oil exports amounted to 81% of the country's total crude oil production^{Footnote 1Footnote 2}. These exports were valued at $124 billion, representing 16% of Canada's total export value^Footnote 3.

The United States (U.S.) remains the primary destination for Canadian crude oil, receiving approximately 97% of Canada’s crude oil exports in 2023. The remaining 3% was exported to non-U.S. destinations including the Netherlands, United Kingdom, Germany, Spain, France, Norway, Italy, and Hong Kong (Figure 1). Alberta, Canada’s largest oil producer, is also the largest source of crude oil exports to the U.S. (Figure 1). In 2023, Alberta contributed 87.4% of the total volume exported to the U.S. followed by Saskatchewan with 8.9%, while Newfoundland and Labrador, British Columbia (B.C.), and Manitoba contribute 1.9%, 1.3%, and 0.4%, respectively^Footnote 4.

Figure 1: Annual Canadian Crude Oil Exports by Province to International Destinations

The destinations for crude oil exports to the U.S. are grouped into five regions or districts known as PADDs (Petroleum Administration for Defense Districts)^Footnote 5 (Figure 2). Figure 3 shows that in 2023, Canadian crude oil exports to the U.S. were primarily received by PADD 2 (U.S. Midwest), which accounted for 61.8% of the total volume. PADD 3 (U.S. Gulf Coast) followed with 18.6%, while PADD 5 (West Coast), PADD  4 (U.S. Rocky Mountain), and PADD 1 (U.S. East Coast) received approximately 7.2%, 6.8%, and 2.6% respectively. This is consistent with trends from previous years, where PADD 2 and PADD 3 are the primary receiving areas. This reflects the well-developed pipeline infrastructure that connects Canadian oil-producing regions, particularly in Alberta and Saskatchewan, to key U.S. refining hubs in PADD 2 and PADD 3.

Figure 2: United States PADD Regions and Operating Refinery Capacity as of 1 January, 2023

Over the last decade, there has been a notable shift in the share of total exports from Canada to the different U.S. regions (PADDs), particularly with PADD 3. Exports to PADD 3 increased by 505% from 2013 to 2023, followed by PADD 5, 2, and 4 with 47%, 38%, and 14% increase, respectively, while PADD 1 declined by 48%. Canadian oil exports gained a growing share in PADD 3 due to growing production of Canadian crude oil (particularly from the oil sands)^{Footnote 6Footnote 7}, the ability to process heavy crude by Gulf Coast refineries (PADD 3), and declining shipment from other countries (e.g. Mexico and Venezuela)^{Footnote 8Footnote 9}. The decline in crude oil exports from Canada to PADD 1 is linked to the declining refinery capacity in this region. Over the last decade, operating refinery capacity in PADD 1 decreased from 1.27 MMb/d in 2013 to 0.88 MMb/d in 2023^Footnote 10 due to the closure of several refineries^Footnote 11.

With the Trans Mountain Expanded System fully in-service, the export patterns may change over time, such as the potential for increased exports to the U.S. PADD 5 and Asian markets.

Figure 3: Canadian Crude Oil Export Volumes by Destination

Date modified:

2024-08-20