Eastern Canadian crude oil supply and its implications for regional energy security

Canada has been blessed with immense energy resources; however, their distribution is not uniform. One such example is crude oil, which is found primarily in western Canada. Eastern Canada, consisting of the six eastern-most provinces (Newfoundland and Labrador, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, and Quebec), produce limited quantities of crude oil, most of which is exported to the United States. Ideally, western Canadian crude oil would meet the demands of eastern Canada; however, the North American Free Trade Agreement (NAFTA) and the absence of oil pipelines means that eastern Canada increasingly relies on supplies of crude oil from a small number of oil exporting countries, many with declining production.This paper examines crude oil production, supply, and its refining in eastern Canada. It shows that crude production in the region has reached its peak and that increasing global competition for crude oil will affect energy security in eastern Canada, either through price increases or supply shortages, or both.