IHS CERA: The Role of Canadian Oil Sands in U.S. Oil Supply

Jun. 07, 2010 9:09 AM ETSU, CNQ, IMO, TECK, HUSKF, OVV, TLM, CEO8 Comments
David Hunkar profile picture
David Hunkar

The BP Deepwater Horizon oil spill has triggered outrage among the general public and may lead to heightened regulatory environment for the offshore drilling industry. Already the Obama administration has suspended shallow-water drilling in the Gulf of Mexico until producers resubmit plans to meet the revised safety and environmental rules. In the months and years to come, additional restrictions may be put in place to prevent future disasters and potentially increasing the cost of oil exploration. In this scenario, Canada’s oil sands for the US oil supply attain greater importance.

Renowned consultancy IHS CERA recently published a report titled “The Role of Canadian Oil Sands in U.S. Oil Supply”. Some of the key takeaways from this report are noted below:

“Geography has made us neighbors. History has made us friends. Economy has made us partners. Necessity has made us allies.”
John F. Kennedy, Address Before the Canadian Parliament in Ottawa, May 17, 1961.

  • The growth potential of Canadian oil sands as a source of US oil imports is three to four times higher in 2030 than in 2009
  • Due to the high cost of alternative fuels, the US will continue to remain as the largest oil market in the world for the next two decades
  • Oil sands production more than doubled form 2000 to 2009
  • In 2009, the US consumed 22% of the world oil supply
  • US oil demand is unlikely to cross the peak reached in 2005

Last year, 60% of the US petroleum demand was satisfied by imports from over 40 countries. However, over the past decade 70 percent of crude oil imports have been sourced from just five countries as the table shows below: [ images]


It is interesting to see Canada among the top five suppliers to the U.S. Canada’s share of US oil imports

This article was written by

David Hunkar profile picture
David Hunkar (pseudonym) holds a Masters Degree in Finance and Economics. He is a part-time consultant for a financial consulting firm where he manages portfolios for manages portfolios for self and family. He has been an investor for the past ten years. David focuses on foreign stocks trading in the US markets including the OTC market. He concentrates on high dividend yield and dividend growth stocks. ETFs are his another favorite investment vehicle. In addition to his contributions here at Seeking Alpha, you can also visit him at his blog www.topforeignstocks.com

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