US depends on Canadian oil, despite Trump’s comments, Cenovus CEO says

The CEO of Cenovus Energy said the economies of Canada and the U.S. are inextricably linked, despite President Trump's claims the U.S. doesn't need to import anything from Canada.

The U.S. relies on Canadian oil imports, despite comments to the contrary by U.S. President Donald Trump, the CEO of Cenovus Energy told the Global Energy Conference in Calgary on Tuesday.

Trump has threatened on-again, off-again tariffs on Canada’s oil, of which nearly 4 million barrels per day are exported to the United States. Canada is the world’s fourth-largest oil producer, and fifth-largest natural gas producer.

Trump has previously said the U.S. does not need to import goods, including oil and gas, from Canada.

Prime Minister Mark Carney, who won a minority government in April on a wave of anti-Trump voter sentiment, has said the country’s old relationship with the U.S. based on steadily increasing economic integration is over.

Jon McKenzie, who heads oil sands company Cenovus and chairs the Canadian Association of Petroleum Producers industry group, said trade tensions between the two nations have highlighted the need for Canada to diversify its exports.

But he said that need does not take away from the fact the two countries’ energy systems are inextricably linked.

“What hasn’t changed is energy economics and energy physics,” said McKenzie.  “The reality is we are hardwired into the U.S. system.”

Canada depends on U.S. refiners to buy the vast majority of its exported oil, while landlocked U.S. refineries in the Midwest are configured to process the grade of crude that Canada produces.