Rebalancing Trade Flows
Dec. 30, 2014
The most significant aspect of the North American unconventional crude oil renaissance is the variety of crudes produced; the Canadian oil sands supply heavy crudes and US shale reserves supply light crudes. Because of the assortment of crudes available from unconventional plays, increased North American production has displaced a wide range of foreign crudes, which has led to a restructuring of long-established trade routes.
Canadian exports to the US have had a considerable impact on the global supply chain and we project that this phenomenon will escalate through 2019. Canada is a net exporter of crude oil and as productivity from their oil sands increases, Canadian exports to the US will expand as well. Due to intermodal transportation constraints, Canadian crudes are currently not reaching coastal ports to load tankers for more distant export markets in any significant volumes. The US is the main beneficiary of Canada’s growing export trade, absorbing approximately 97% of its international crude sales.
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