US crude imports from Canada climbed to a record high 2.436 million b/d in December, data released by the US Energy Information Administration showed Wednesday.
Imports were up 75,000 b/d from November, leaving Canada as the number one exporter of crude to the US. Saudi Arabia came in second at 1.293 million b/d, while Mexico came in third at 945,000 b/d.
Crude imports from Canada have been ramping up steadily since the early 1980s, from an all-time low of 121,000 b/d in June 1981, and have climbed roughly 1 million b/d over the last 11 years alone.
Increased Canadian production has cut demand for imports outside of North America. US imports of Saudi Arabian crude, for instance, have fallen from nearly 1.7 million b/d in July 2008.
The Canadian barrels have also helped to offset North Sea production losses. US crude imports from Norway stood at just 18,000 b/d in December, the EIA data showed, down from 523,000 b/d in April 2002.
Canadian crude imports into the US Midwest -- where the bulk of Canadian oil arrives -- were at a record high 1.664 million b/d in December, continuing a steady rise from the mid-1980s.
Canadian imports into the Midwest have over the years replaced crudes from around the world. In December, the Midwest received imported crude from just two other countries besides Canada, and in very small amounts.
Saudi Arabian crude imports into the Midwest fell to just 16,000 b/d in December, a new low. That was followed by Nigerian imports of 11,000 b/d.
The Rocky Mountain region received 268,000 b/d of Canadian crude in December, while 228,000 b/d of Canadian crude was shipped to the Atlantic Coast, and 98,000 b/d to the Gulf Coast. The West Coast took in 177,000 b/d of Canadian crude.
The abundance of Canadian supply in the Midwest has kept crude prices low in the region, giving area refiners the motive to keep runs high. Midwest refiners were operating at 95.1% of capacity in December, the highest December rate since 2004, the EIA data showed.
In contrast, Gulf Coast refiners were operating at 90% of capacity in December. Although Texas inland refiners, which are able to process relatively cheaper grades, such as WTI, were operating at 92.7% of capacity, while Louisiana Gulf Coast refiners were operating at 88.8% of capacity.
Poor refining margins on the US Atlantic Coast have shut down several refineries in the region over the past year. As a result, refiners were operating at just 57.8% of capacity in December, an all-time low.
