Why the EU Does Not Source Gas and Oil from Canada to Bypass the US

This article analyzes why the European Union has not turned to Canada as a primary alternative energy supplier despite efforts to reduce dependence on Russian hydrocarbons and mitigate risks associated with US reliance. Although Canada is a top global producer of oil and gas, it remains conspicuously absent from the EU's supply chain. The primary reason is logistical and economic: approximately 90% of Canada’s oil exports are directed to the United States due to geographical proximity and an established pipeline network. Furthermore, Canadian production consists largely of heavy oil from Alberta tar sands, which requires specialized refining capabilities found predominantly in the US Midwest and Gulf Coast. These refineries have increasingly substituted Canadian crude for Venezuelan and Mexican supplies. Consequently, Canada effectively prioritizes the American market, leaving the EU to rely mainly on Norway and the US for its energy needs, raising concerns about trading one dependency for another amidst ongoing geopolitical tensions in Ukraine and the Middle East.