18 June 2013 03:35 [Source: ICIS news]
WASHINGTON (ICIS)--As North America becomes more self sufficient in energy and global oil demand grows, Canada must diversify its energy markets, an industry analyst said on Monday.
The Canadian/US energy trade relationship is the largest of its kind in the world. Natural gas flows both ways and oil does too, but mostly from Canada into the US, said John Foran of Natural Resources Canada.
“We’re now dealing with change in shale gas. Canadian prices are less than global prices for the same product. As a result, energy market diversification is a priority for Canada,” said Foran during the Energy Information Administration (EIA) 2013 Energy Conference.
Canadian oil and gas production far exceeds domestic requirements. Resources are huge and growing, which will lead to greater volumes available for export.
According to Foran, 99% of Canadian crude oil exports and 100% of its natural gas exports go to the US.
But as the US becomes more self sufficient in the past few years, Canadian demand from the US has fallen. However, Canadian oil and gas production is expected to increase in the coming years, causing the need for export terminals.
Despite a drop in demand for US crude imports, Foran said he does not expect US demand to fall overall.
“It’s just an overall switch where the US needs less crude, and Canadian production has grown and is projected to continue to grow by 700m bbl/day by 2030,” he said.
The EIA Energy Conference runs through Tuesday.
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