Supply Chain Analysis of Crude Oil and Petroleum Products in Canada.

The Transportation of Dangerous Goods Directorate (TDG), based on risks, develops safety regulations and standards, conducts oversight, and provides expert advice on dangerous goods incidents to promote public safety in the transportation of dangerous goods by all modes of transport in Canada.

Canada is a major supplier of secure, reliable crude oil to international markets, producing 4.6 million barrels per day (mb/d) of crude oil in 2018 . Canada also holds one of the world’s largest oil reserves in the world, surpassed only by Saudi Arabia and Venezuela2. Canada has 168 billion barrels of proven oil reserves, of which 164 billion barrels are in the form of oil sands3. In 2018, 96% of Canadian crude oil exports went to the U.S. and 4% went to Europe, Asia and the Caribbean4. As a result, Canada was the largest foreign supplier of crude oil to the U.S., accounting for 48% of total U.S. crude oil imports and for 22% of U.S. refinery crude oil intake5.

As the world recovers from the COVID-19 pandemic, Canadian crude oil output and exports are predicted to grow. In its most recent forecast, the Canada Energy Regulator predicts that by 2040, oil sands production in Canada will increase by approximately 1.5 million barrels per day. As well, Canadian oil production is set to hit a record 5.87 million barrels per day on average in 2022, its highest level ever . In addition to crude oil being a concern for TDG due to high transported volumes and its involvement in many dangerous goods incidents, these forecasts are highlighting a need to re-examine the crude oil supply chain in Canada.

TDG completed its last supply chain analysis on crude oil and petroleum products in 2016. An update to this study will provide an overview of the current handling, offering for transport, transport and import of these dangerous goods in Canada, their respective modes of transport and routing, as well as identification of facilities involved in these supply chains. This update will also provide an overview of how the crude oil and petroleum products supply chain has changed over the past 6 years.

The primary objective of this GIS study is to comprehensively describe the supply chain from a safety perspective for crude oil and petroleum products in Canada including comprehensive information on crude oil carried by trucks from oil head to rail head, for the purposes of contributing to informed policy decisions regarding safety regulations. In addition, the study will analyze how the supply chains have changed since the previous study in 2016.