Prime Minister Mark Carney recently highlighted the crucial role of Canada in fueling American economic growth through natural gas exports to the U.S. This raises the question of the potential impact if Canada were to cease these shipments.

Despite the ongoing trade tensions between Canada and the U.S., energy products like oil and natural gas have not been used as bargaining tools. While Alberta Premier Danielle Smith has been against this idea, Ontario’s Doug Ford believes all options should be considered.

Carney emphasized that the U.S. heavily relies on Canada for energy, stating that Canada supplies 99% of U.S. natural gas imports, 85% of electricity imports, and 60% of crude oil imports. The U.S. Energy Information Administration data shows that almost all of America’s non-domestic natural gas supply comes from Canada.

Dulles Wang, director of Americas gas and LNG at Wood Mackenzie, estimates that Canadian natural gas accounts for around five percent of U.S. natural gas consumption. Wang highlighted the intricate network of natural gas pipelines between Canada and the U.S., emphasizing the significant role of natural gas in various sectors.

Enbridge, a major natural gas provider based in Calgary, plays a crucial role in the North American energy market. Wang pointed out that while Canadian natural gas shipments to the U.S. are relatively small compared to domestic production, the geographic distribution of these deliveries is significant.

In regions like the Pacific Northwest, Canadian natural gas plays a vital role in meeting energy demands. The LNG Canada facility in Kitimat, B.C., has started exporting liquefied natural gas to Asian markets. Wang emphasized the importance of diversifying energy export markets to reduce dependence on the U.S.

Halting natural gas exports to the U.S. could have severe economic repercussions for Canada, leading to oversupply and price drops. Wang warned that eliminating the U.S. as a customer could harm Canada’s energy industry. The government is exploring opportunities to expand energy exports to non-U.S. markets to ensure market diversification and economic stability.