Despite escalating political tensions and the specter of trade tariffs, the United States continues to rely heavily on Canadian oil, Cenovus Energy CEO Jon McKenzie said Tuesday at an energy conference in Calgary.
Canada exports nearly 4 million barrels of crude oil per day to the U.S., making it America’s largest foreign oil supplier. McKenzie underscored the deep interdependence of the two countries’ energy sectors, pushing back against assertions by former President Donald Trump that the U.S. can operate independently of Canadian oil.
“What hasn’t changed is energy economics and energy physics,” McKenzie said. “The reality is we are hardwired into the U.S. system.” He noted that many refineries in the U.S. Midwest are specially configured to process Canadian crude.
While acknowledging that recent trade disputes have highlighted the need for Canada to diversify its energy export markets, McKenzie cautioned against hasty policy responses. Instead, he called on Prime Minister Mark Carney’s administration to adopt a long-term, strategic approach that enhances North American energy integration.
“We need to make sure we don’t act viscerally when we’re threatened and that we act intelligently in our long-term interest,” he said.
Carney, who took office in April riding a wave of anti-Trump sentiment, has pledged to accelerate the approval of major infrastructure projects and to position Canada as a leader in both conventional and clean energy. However, McKenzie warned against a federal approach that selectively supports certain energy initiatives, advocating instead for comprehensive regulatory reforms aimed at attracting broad-based investment.
On the operational side, Cenovus confirmed it is ramping up production at its Christina Lake oil sands facility, which produces 238,000 barrels per day. The site was temporarily shut down in early June due to nearby wildfires.
