Canadian Energy Centre
Energy Perspectives: Trading Up – Canadian oil and gas exports
From the Canadian Energy Centre
The composition of Canadian trade has changed significantly in the last 20 years, with oil and gas now Canada’s most significant export
Global trade patterns have changed in recent years due to ongoing political and economic turmoil. In Canada, these changes are apparent at all levels – provincial, national, and international. The share of goods and services exported has been exceptionally high since 2002 and stood at 33.7 per cent of GDP in 2022. In Canada, 1 in 6 jobs are linked to exports.
Exports have always been essential to Canada’s economy. In 2022, Canada exported $779 billion worth of goods and services, double the value from 2002. One main reason for the country’s substantial export numbers relates to soaring oil and gas prices. Oil and gas accounted for more than 50 per cent of the growth in Canada’s goods exports in 2022. Those numbers are part of a trend: in the last 20 years, from 2002 to 2022, oil and gas exports increased significantly, rising from $36.5 billion in 2002 to $182 billion in 2022, most of it going to the United States (see Figure 1).
Canada’s Top Five Exported Products, 2002 vs. 2022
Since 2002, the composition of Canada’s trade has shifted. In 2002, the top exported product was motor vehicle parts. That year Canada exported $61.1 billion worth of automotive parts, accounting for 16 per cent of total exports. Also, that year Canada’s oil and gas exports stood at $36.5 billion, or 9 per cent of exports (see Figure 2).
Since then, the share of automotive exports as a proportion of all Canada’s exports has declined, while the share of oil and gas exports has increased, mainly due to greater demand from the United States. In the last 20 years, on average, Canada exported $82 billion of oil and gas each year.
In 2022, Canada’s annual oil and gas exports reached a record $182 billion, and the sector accounted for 23 per cent of Canada’s total exports. Accompanying the increase in exports from the sector were increased prices for oil and gas, partly as a result of rising demand in the United States.
The Canadian Energy Centre’s “Energy Perspectives” are short analyses released periodically to provide context on energy issues for investors, policymakers, and the public. The source of profiled data depends on the specific issue.
Taiwan Semiconductor Manufacturing Company’s campus in Nanjing, China
From the Canadian Energy Centre
Canada inches away from first large-scale LNG exports
The world’s leading producer of semiconductor chips wants access to Canadian energy as demand for artificial intelligence (AI) rapidly advances.
Specifically, Canadian liquefied natural gas (LNG).
The Taiwan Semiconductor Manufacturing Company (TSMC) produces at least 90 per cent of advanced chips in the global market, powering tech giants like Apple and Nvidia.
Taiwanese companies together produce more than 60 per cent of chips used around the world.
That takes a lot of electricity – so much that TSMC alone is on track to consume nearly one-quarter of Taiwan’s energy demand by 2030, according to S&P Global.
“We are coming to the age of AI, and that is consuming more electricity demand than before,” said Harry Tseng, Taiwan’s representative in Canada, in a webcast hosted by Energy for a Secure Future.
According to Taiwan’s Energy Administration, today coal (42 per cent), natural gas (40 per cent), renewables (9.5 per cent) and nuclear (6.3 per cent), primarily supply the country’s electricity.
The government is working to phase out both nuclear energy and coal-fired power.
“We are trying to diversify the sources of power supply. We are looking at Canada and hoping that your natural gas, LNG, can help us,” Tseng said.
Canada is inches away from its first large-scale LNG exports, expected mainly to travel to Asia.
The Coastal GasLink pipeline connecting LNG Canada is now officially in commercial service, and the terminal’s owners are ramping up natural gas production to record rates, according to RBN Energy.
RBN analyst Martin King expects the first shipments to leave LNG Canada by early next year, setting up for commercial operations in mid-2025.
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