Monday, 17 February 2025
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CanadaPolitics

The Hidden Dangers of Canada’s Energy Dependence on the U.S.

  • Canada‘s energy security has been compromised by its overreliance on U.S. pipelines.
  • The U.S. now holds economic leverage over Canada due to its dependence on Canadian oil.
  • Cutting off oil supply would be a drastic move, but could provoke a severe political backlash from the U.S.

Canada’s energy infrastructure, built to enhance continental security, has inadvertently placed it at the mercy of U.S. political decisions. The assumption that the U.S. would always be a stable and trusted ally in energy trade has proven flawed, especially with the rise of leadership that views Canada more as a target than a partner.

The situation has raised concerns over the strategic wisdom of such infrastructure decisions. While cutting off energy supplies to the U.S. could put pressure on its economy, it would also risk damaging Canada’s own energy market.

Canada’s Vulnerable Energy Strategy: How U.S. Pipelines Became a Double-Edged Sword

Canada’s historical belief in the safety of its energy infrastructure, heavily reliant on U.S. pipelines, has crumbled in the face of political uncertainty. Initially, it seemed like a win-win situation: reducing overseas oil dependence and strengthening economic ties. However, the rise of populist policies in the U.S. has turned Canada’s pipelines into potential weapons in a trade war.

Now, Canada’s vulnerability is exposed. U.S. demand for Canadian heavy oil gives the U.S. significant leverage over Canadian economic interests. If trade relations sour, Canada risks being unable to protect its own energy security, as it lacks the infrastructure to send oil to other markets.

Meanwhile, Canada’s “nuclear option” — cutting off oil exports — could inflict damage on both countries but would come with immense risks. The move would likely lead to shortages in other parts of Canada, making it a hard decision to make without serious repercussions.

The reliance on U.S. infrastructure has created a critical dilemma. While pipelines are essential for economic stability, they also leave Canada vulnerable to a shift in U.S. political priorities. Without alternative routes or markets, Canada’s energy future remains precariously tied to U.S. policy.

Canada’s energy strategy, which once seemed like a symbol of interdependence, now faces serious challenges. The rising political risks tied to U.S. influence underscore the need for Canada to reconsider its energy infrastructure and diversify its markets.

“If it’s easier to push a pipeline through the U.S. border, if it’s cheaper, if there’s less political blowback than going through B.C. or Quebec, well it was a no-brainer, because the United States, our closest ally through all of history, would never impose a punitive tariff on us.” – Rory Johnston

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