The Wonderful U.S. Oil Trade Deficit with Canada

There is a zinger of a very accurate point in this article (at least in my opinion, anyway.)

Blame Oil For Our Trade Deficit With Canada

Without Canada's crude, the U.S. would likely enjoy a healthy trade surplus with Canada, but at the expense of more dependence on OPEC countries for our oil. In addition, such dependence would likely mean higher oil prices for consumers, and less energy security.

Given that the U.S. can't (yet) supply all of our oil needs, there are perfectly rational reasons that a goods trade deficit with Canada exists. If oil prices rise, that deficit is likely to increase. But that's still better than the alternatives.

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Whats the USA's annual trade deficit in Oil - $200bn?

Make you wonder why they are repealing CAFE targets - restore the USA's position as No.1 Oil importer in the World and make US built cars unsaleable anywhere else? 

 

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MY Fiat 124 Spyder with the original carburetor jets in 1969 yielded 54 mpg, and I had a lot of fun with that buggy.  Then at one point I had to rebuild the carburetor, and after I was done the fuel burn dropped to about 33 mpg.  Why was that?  Because Fiat was shipping larger-bore carb jets in their kits for the North American market!  Their marketing dept. had decided that the cars needed more oomph off the line to compete with US offerings.  Hey, it's a Spyder, not a Corvette!  

I would be just fine with that Spyder at 54 mpg.  Perfect car for a poor boy like me. 

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Well it wasn't that long ago that we begged Canada to sell us oil

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(edited)

Tom K, Canadian oil is traded in US $, not CAN$. The fluctuation of foreign exchange affects it.

Moreover, it is traded $15 at a discount compared to WTI due to lack of pipeline/transportation to sell the crude oil.

Edited by AugustVanTage

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AugustVT, if Canada could get its oil pipeline issues resolved a bit, the oil trade imbalance might increase even more in favor of Canada.

Seems to me that it would be better, security wise, for the U.S. to be buying oil from Canada rather than from the Middle East.

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(edited)

I don't wan't to be rude, or mean, neither offend any Canadian.  but Canada is pretty much a non official extension of the US, sorry. it's their largest customer of oil and gas by now. Yeah sure is more expensive than Saudi Oil, but the US doesn't have to put a nuclear carrier in an canadian lke or gulf like they do in the persian gulf to not let Iranian attack on Saudi Arabia, any money they lost by the price differnce between Canada's oil sands and Arabic light crude is money they recover by not protecting the saudies.

Edited by Sebastian Meana

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I'm an American and I'm glad we get oil from Canada.  

As much as I don't like Justin Trudeau, I'm very supportive of Alberta's oil industry.  

I hope both the Trans Mountain and Keystone XL pipelines can be built as quickly as possible.  

I'm tired of all the pipeline protesters in the US and the obstructionist provincial government of British Columbia.  

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