Canadian Crude Imports Fall 20% in 2020 Due to Pandemic
CALGARY, Alberta (Reuters) — Imports of crude oil into Canada dropped 20% year-on-year in 2020 due to weak demand as a result of the COVID-19 pandemic, the Canada Energy Regulator said in an analysis released Wednesday.
Canada imported 555,000 bpd last year, the lowest level in at least 10 years, down from 693,000 bpd in 2019 and more than 800,000 bpd in 2010.
The total cost of imported oil in 2020 fell 40% from the previous year to C$11.5 billion ($9.18 billion), reflecting the lower volumes and a slump in global crude prices.
Canada is the world's fourth-largest crude producer and exports around 3.7 million bpd, but the vast majority of its production comes from the western province of Alberta.
The country still imports some crude to serve refineries in eastern Canada because of a lack of pipeline access to western supplies, the specific product requirements of different refineries, and because it can be cheaper to import.
"Refineries in the main importing regions of Quebec and Atlantic Canada have been slower to recover from the pandemic impacts compared to refineries in the rest of Canada," the CER said in its analysis.
The CER said that was because of tighter COVID-19 travel restrictions in Quebec and Atlantic Canada than in western provinces, and weak demand from other countries for refined product exports from Atlantic Canada refineries.
The percentage of barrels imported from the United States rose to 77%, up from 72% the year before. Another 13% came from Saudi Arabia, 4% from Nigeria, 3% from Norway, and the remainder from several other countries.
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