Market Snapshot: Crude oil imports rose slightly in 2023, for the first time since 2019

Release date: 2024-06-12

After declining the past three years, Canadian crude oil^Definition* imports grew in 2023, breaking the downward trend that started during the COVID-19 pandemic. In 2023, crude oil imports increased slightly to 490 thousand barrels per day (Mb/d), 4.8% higher than 2022, and 3.5% higher than 2021.

Despite this increase in imports in 2023, imports have not recovered to pre-pandemic levels. This is largely due to the closure of the Come by Chance Refinery in Newfoundland and Labrador in 2020, which relied on imported crude oil.^Footnote 1 As well, the completion of the Enbridge Line 3 Replacement Project in late 2021 has allowed more western Canadian crude oil and U.S. light oil to reach Ontario and Quebec by pipeline.^Footnote 2

Figure 1: Annual Canadian crude oil imports

Where does Canada’s imported oil come from?

The United States (U.S.) continues to be the largest source of Canada’s imported crude oil. In 2023, 72.4% of Canada’s oil imports originated from the U.S., compared to 72.0% in 2022 and 65.7% in 2021. Most of the crude oil imported from the U.S. comes from the Gulf Coast at 68.8% in 2023, followed by the Midwest regions at 30.1%.^Footnote 3

Nigeria was the second largest supplier of imported crude oil in 2023 at almost 13% of Canada’s total, which is nearly double from 2022. Saudi Arabia was the third largest at almost 11%. Imports from Saudi Arabia dropped by 27 Mb/d compared to 2022. Imports from Norway have been declining steadily for the past two decades and reached zero in 2023.

No crude oil has been imported from the Russian Federation since 2019, and the Government of Canada sanctioned Russian crude oil imports following Russia’s invasion of Ukraine in early 2022.^Footnote 4 Over the past decade, crude oil imports from Russia have been low-to-zero.

Figure 2: Annual Canadian crude oil imports by country of origin and destination

Which provinces import the most crude oil?

Refineries need crude oil as feedstock^Definition* to produce refined petroleum products (RPPs)^Definition* like gasoline, diesel, heating oil, and jet fuel. Each refinery operator decides where to source its crude oil feedstock based on several factors including grade^Definition*, price, availability of local supply, cost of transportation, and other logistical considerations.

Although Canada produces more crude oil than needed by Canadian refineries, refineries in certain provinces still import crude oil. In general, provinces with refineries located further from western Canadian production sources–Ontario, Quebec, and New Brunswick–consistently import the most crude oil. Provinces located near domestic crude oil production with a direct pipeline connection generally do not need to import crude oil.

New Brunswick continued to import the most crude oil of all provinces in 2023. Canada’s largest refinery, the Irving Refinery in Saint John, is not connected to crude oil pipelines, so it relies on marine shipments for its crude oil feedstock. New Brunswick imports have been fairly consistent since 2020, averaging about 263 Mb/d. Quebec remains the second largest importer of crude oil in Canada, although its imports have been declining in the past decade. Quebec’s Valero Refinery, the second largest refinery in Canada, relies on marine shipments of imported foreign crude oil as well as Canadian crude oil supplied by Enbridge Line 9.

Ontario's refineries receive the majority of their oil from western Canada via the Enbridge Mainline system and receive smaller amounts by marine shipments when the St. Lawrence Seaway is free of ice. Ontario’s crude oil imports, which have been sourced entirely from the U.S. since 2014, have increased steadily in the last three years. This is due in part to the completion of the Enbridge Line 3 Replacement Project, which relieved bottlenecks and allowed more oil to flow into Ontario. Refineries in Ontario have also been consuming more oil in the last three years.^Footnote 5

Figure 3: Annual crude oil imports by province

What does imported crude oil cost?

The total cost of imported crude oil was $19.5 billion in 2023, 9% lower than 2022. This decrease is primarily because global crude oil prices gradually declined throughout late 2022 and up to mid-2023, after Russia’s invasion of Ukraine elevated oil prices for most of 2022. Prices rose again in the third quarter of 2023. The average cost of an imported barrel was $109^Footnote 6 in 2023, relative to $126 in 2022.

Date modified:

2024-06-11