We’ve highlighted the dramatic increase in Canada’s energy exports to Asia, including oil exports to China since the completion of the Trans Mountain Expansion pipeline last spring and the surge in propane shipments to Japan and South Korea since 2019.

In addition to helping to diversify Alberta’s export portfolio and helping narrow the light-heavy oil price differential, the spike in oil exports to China has offset large declines in other product categories, especially agricultural goods.

Alberta’s energy product exports to China were $2.0 billion during the first 11 months of 2024, a five-fold increase over the same period in 2023. That’s entirely driven by crude oil, which went from zero last year to $1.8 billion.

The increase was made possible by the additional Alberta oil making its way to the west coast for export to Asia via the Trans Mountain pipeline expansion (TMX) that was completed last spring.

When energy products are excluded, Alberta’s year-to-date (YTD) exports to China were down by $526 million (-11%) mostly due to a $512 million (-19%) drop in sales of farm and intermediate food products.

Energy products have, in fact, emerged as the second largest segment of Alberta’s exports to China after farm and intermediate products. (The two categories combined accounted for 69% of Alberta’s YTD exports to China.)

The rise in oil exports to China is a welcome addition to Alberta’s export toolbox that will help, as it already has, offset volatility in other areas.

While this is significant progress, there are a couple points to keep in mind.

First, future growth in Alberta’s oil exports to China or other parts of Asia is limited by the capacity of the pipeline system. At its maximum capacity, TMX can move 590,000 more barrels of Alberta oil per day to the west coast than before it came online with that additional room slated to be filled by 2028 according to Trans Mountain.

Second, Alberta's crude oil exports to the U.S. still dwarf exports to all other countries at 97% of the province's total crude exports over the first 11 months of last year.

Answer to the previous trivia question: At just under $20 million, Washington was the U.S. state that bought the most electricity from Alberta in 2023.

Today’s trivia question: Alberta is second on the list of Canada’s largest exporters of goods to China. Which province is in top spot?