Canadian Oil Sands

Our nation needs more supplies of all energy sources, including oil and natural gas, to meet growing energy demand and provide consumers with reliable supplies of fuel. What many Americans don’t know is that the U.S. gets more oil from Canada than from any other country.

Canadian oil is a reliable and plentiful strategic resource for meeting our nation’s growing energy demand and making the United States more energy secure.

Here are some of the most asked questions and answers about Canadian oil sands:

How abundant are Canada’s oil reserves, and what portion do oil sands constitute? Canadian oil reserves are vast and are second only to Saudi Arabia, using current technological assessments. According to the Canadian Association of Petroleum Producers, oil sands now account for more than half of western Canada’s total oil production. By 2025, production from Canadian oil sands is expected to rise from about 1.3 million barrels per day to about 3.3 million barrels per day.

Why is Canadian oil important to the United States? Canada and the United States have an excellent trading and political relationship, and Canada’s reliable and plentiful oil is crucial to improving our nation’s energy security and meeting its growing energy demand.  The economic impact of Canadian oil sands development is a boon for the U.S. economy and is expected to lead to the creation of more than 340,000 new U.S. jobs between 2011 and 2025.

How much of its oil does Canada export to the United States? Currently, Canada sends more than 99 percent of its oil exports to the United States—the bulk of which goes to Midwestern refineries. By getting more of their oil from Canada, Midwest refineries would move from the back of the crude oil supply line to the front—making them less vulnerable to supply disruptions caused by geopolitical upheaval or storms in the Gulf of Mexico.

What are oil sands and how are they used? Oil sands are naturally occurring mixtures of sand, clay, water and a form of petroleum called bitumen—which can be upgraded for synthetic crude oil and refined to make asphalt, gasoline, jet fuel and some chemicals.

How do oil sands factor into the U.S. energy mix? According to EIA, Canada is the number-one supplier of imported oil and natural gas to the United States. Of the Canadian crude oil brought into this country, approximately half is derived from oil sands. According to a study released in May 2009 by the Cambridge Energy Research Associates, if oil sands development is maximized, the amount of oil the Unites States imports from Canada could potentially double by 2035.

(more on Canadian Oil Sands.)

Also see:
Canada's Oil Sands and Economic Impact on the United States' Economy
Canadian Oil Sands Primer 
Energizing America 
Future Fuels