Canada-U.S. Energy Tensions

On Dec 13 2024, I had the opportunity to discuss a major geopolitical and economic issue on The Jerry Agar Show: the growing tensions between Canada and the United States over energy exports. Ontario Premier Doug Ford’s recent remarks about potentially “turning off the taps” sparked a conversation about the deep integration of our energy markets and the far-reaching implications of such a move.

What’s at Stake?

Electricity Exports: Supporting U.S. Grids

• In 2023, Canada exported 49.4 terawatt-hours (TWh) of electricity to the U.S., generating $3.2 billion CAD in revenue.

• These exports power over 1 million U.S. households daily, stabilizing grids in states like Michigan, New York, and Minnesota.

• Cutting off these exports could cause localized shortages, increase electricity costs, and force states to rely on less sustainable energy sources.

Crude Oil: Canada’s Role in U.S. Energy Security

• Canada supplies over 60% of U.S. crude oil imports, making it a cornerstone of American energy stability.

• Any disruption in crude oil exports could ripple through U.S. refineries, particularly in the Midwest, driving up fuel prices and causing supply chain disruptions across industries.

Strategic Implications

During the interview, we explored how Canada could leverage its energy exports to push back on U.S. policies:

• Regulatory curtailments or infrastructure shutdowns to halt or reduce exports.

• Redirecting electricity and crude oil to prioritize Canadian needs.

• The potential impact on industries reliant on affordable energy, such as EV manufacturing and AI-powered data centers.

🎧 Listen to the full interview here: Canada-US Tensions Rise - The Jerry Agar Show

Why This Matters

Canada’s role as an energy powerhouse is not just about economics—it’s about stability, innovation, and shaping the future of international relations. The decisions we make now will influence trade, technology, and sustainability efforts for decades to come.

Let’s Continue the Conversation