As promised yesterday, in today's update, I am adding additional information on the value of bolstering domestic utilization of petrochemicals in Canada. (Please allow me to be clear! I am not an expert in this field, but am a evidence data scientist, who can work on statistical data to interpret them for policy making.)

Canada ranks third globally in proven oil reserves, with approximately 170.9 billion barrels as of 2022, and falls next to Venezuela and Saudi Arabia. The majority of these reserves, about 166.3 billion barrels, are located in Alberta's oil sands as per the Natural Resources Canada

In 2023, Canada exported a record 4 million barrels per day of crude oil, accounting for 81% of its total production. These exports were valued at $124 billion, representing 16% of Canada's total export value. The vast majority (approximately 97%) of Canada's crude oil exports are destined for the United States. 

At the same time, Canada also imports crude oil, to the tune of $55 billion in 2014, primarily to supply refineries in Eastern Canada that are not fully connected to domestic production sources.

Canada's reliance on crude oil exports, particularly to the U.S., and the potential risks associated with trade disruptions and tariffs must be considered, here and now, following recent developments that have highlighted the vulnerabilities, such as impending US tariffs on energy imports. This has prompted discussions within Canada about reducing dependency on the U.S. market and exploring alternative export routes, such as new pipeline projects to access Asian markets.

Enhancing domestic utilization of crude oil for petrochemical production could bolster Canada's self-reliance and economic resilience. By investing in infrastructure and manufacturing capabilities in the proposed new regional cities in this petition, Canada can produce a wide array of industrial products—such as construction materials, textiles, and chemicals out of the petrochemical feedstocks—reducing the need for imports of these goods and adding value to its own natural resources.

While Canada possesses abundant petroleum resources and maintains a strong export position, there is strategic value in developing domestic petrochemical industries. This approach would mitigate risks associated with external market dependencies and trade disputes, fostering a more self-reliant and robust economy.