The Local Energy Problem

Saint John hosts the only oil refinery in Atlantic Canada. The facility relies entirely on imported crude oil. This dependence puts your energy security and fuel affordability at risk. According to a recent analysis by Policy Options, shifting the refinery supply to Canadian sources is a matter of national interest.

Most of the crude oil processed in Saint John comes from a small group of foreign suppliers. The United States now provides more than half of the crude used at the facility. Nigeria is another major supplier. Relying on just five international sources threatens the availability of petroleum products in our region.

The Western Pipeline Dream

Politicians and industry leaders spent decades trying to bring western Canadian crude to Atlantic Canada. Rail deliveries peaked in 2015 and dropped significantly following major derailments. TransCanada proposed the Energy East pipeline to bring oil from Alberta to Saint John. The company withdrew the proposal in 2017. A revival of this pipeline project is highly unlikely.

The East Coast Solution

Newfoundland and Labrador produces millions of barrels of crude oil every year. Most of this oil currently exports to the United States and Europe. The offshore Jeanne d’Arc Basin produces both heavy and light crude. The Saint John refinery operates best using light crude.

Exploration in the Flemish Pass Basin recently uncovered additional reserves of light crude oil. Equinor has an agreement with the provincial government to develop the Bay du Nord project in this basin. These new projects boost offshore production on the East Coast in the coming years.

Securing Our Energy Future

Relying on foreign oil leaves Atlantic Canada vulnerable to global conflicts and trade disputes. Replacing foreign imports with Newfoundland and Labrador crude solves this problem. Canadian ships transport this oil directly to Saint John. This shipping method requires no new pipelines and provides immediate energy security.

Local leaders must champion this shift. Using East Coast oil to feed the Saint John refinery protects the region from supply disruptions and price spikes.

Frequently Asked Questions

Why does the Saint John refinery import oil?

Canada is a top global oil producer but lacks the pipeline infrastructure to move western oil to the East Coast. This forces the Saint John refinery to rely on foreign imports.

What happened to the Energy East pipeline?

TransCanada proposed the pipeline to bring western oil to Saint John. The company canceled the project in 2017.

How can Saint John get Canadian oil without a pipeline?

Tankers transport crude oil from offshore projects in Newfoundland and Labrador directly to the Saint John refinery.