Canadian exports of crude from the U.S. hit a record last month

Canada exported a record amount of crude oil from the U.S. Gulf Coast last month driven by more pipeline capacity into the region and strong Asian demand.  

Shipments jumped to more than 266,000 barrels a day in December after averaging over 180,000 through the year, according to oil data firm Kpler.  The recent reversal of Marathon Pipe Line Inc.’s Capline pipeline has allowed more crude to reach the U.S. Gulf Coast and in turn shipped to other countries. India has been the leading destination by far, followed by China and then South Korea, according to Kpler. 

The development marks a sea change for Canada’s oil industry — the country holds the third highest reserves in the world — but exports to markets beyond the U.S. have been limited due to a lack of infrastructure. Canadian crude exports from the U.S. Gulf Coast averaged just 25,000 barrels a day in 2018, before rising to average around 70,000 in both 2019 and 2020.

“Looking ahead, Canadian crude exports out of the U.S. Gulf should continue to show strength,” said Matt Smith, oil analyst at Kpler. “With Venezuelan crude exports having tanked in recent years, and now with the prospect of Mexican crude being taken off the market, Canadian crude appears to be one of the leading beneficiaries of these changing dynamics.”

In October, overall Canadian shipments of oil to the U.S. jumped to more than 4 million barrels a day, highest volume since the start of the year thanks in part to the startup of a long-delayed Canadian pipeline.