A new report by RBN Energy shows international shipments of Canadian oil from US Gulf Coast ports have continued at a steady pace in 2025, with India and Spain among the major buyers.According to the Canadian Energy Centre, these “re-exports” are crude produced in Western Canada and then shipped by pipeline or rail to terminals in the US, primarily Port Arthur, Texas.Analyst Martin King — citing tanker data compiled by Bloomberg and the US Census Bureau — said re-exports averaged 117,000 barrels per day in June, making it the third straight month above 100,000 barrels per day.The US Gulf Coast hosts the world’s largest concentration of refineries capable of handling heavy crude oil such as Western Canadian Select (WCS) — Canada’s key export.King noted that while China shifted its buying to Canada’s West Coast in 2024, India and Spain have picked up the slack, emerging as strong Gulf Coast customers..In June, India lifted 83,000 barrels per day, up 16,000 from the same period last year.Meanwhile, Spain has remained a more intermittent customer, purchasing 34,000 barrels per day in June — up from zero in May.Despite these flows, the reliance on US ports once again underscores how Canada’s geography and infrastructure limit direct exports from the country..Kian Akhavan, a consultant at Wood Mackenzie, has said, “the development of Canadian energy export infrastructure suffers from domestic opposition as much as it does from the complacency that comes with geographical convenience.”Past proposals such as Northern Gateway and Energy East were canceled amid environmental and Indigenous opposition.The Trans Mountain Expansion (TMX), completed in 2024, boosted capacity to 890,000 barrels per day, but Vancouver’s port facilities are not fully suited to handle large-scale heavy crude exports.In a statement to the Western Standard, Lisa Baiton, President and CEO of the Canadian Association of Petroleum Producers (CAPP), said, “the completion of the Trans Mountain Expansion Project offers additional transportation capacity, but greater access to global markets would provide Canadian producers additional options and an opportunity for enhancing the value for their resources while enabling Canada to play a bigger role in energy security for our trading partners.”In recent months, pressure has been building for Canadian leaders to revisit northern BC options.Leaders from the National Coalition of Chiefs (NCC), representing Indigenous communities, have called for Ottawa to repeal the oil tanker ban on BC’s north coast.The moratorium, known as Bill C-48, banned vessels carrying more than 12,500 tonnes of oil from accessing northern BC ports..They argue that the legislation has discouraged investment in pipelines to ports such as Prince Rupert or LNG Canada at Kitimat, effectively shutting their communities out of possible economic opportunities.“No proponent is going to look at investing in a pipeline to the north coast with that kind of legislation in place,”said Dale Swampy, CEO of the National Coalition of Chiefs (NCC).Prime Minister Mark Carney has previously signalled his support in principle for pipeline projects, but stressed that the initiative must come from the private sector, not Ottawa. With the announcement of his “major projects bill” — Bill C-5 — there is still no concrete plan for new oil infrastructure going forward.“The right policies and necessary infrastructure can unlock the full potential of our natural resources, support our partners and make new ones, create jobs, and build a more resilient economy,” Baiton said. .OPEC chief backs Alberta oil sector, blasts ‘unrealistic’ net-zero targets.“We’ll continue working with the federal government as a collaborative and solutions-oriented partner in growing a strong and resilient economy for all Canadians.”However, it would appear that, for the foreseeable future, the US will remain the dominant channel for Canadian oil exports.Data from the US Energy Information Administration shows Gulf Coast imports of Canadian crude have averaged 400,000 barrels per day this year, with a Reuters report in Aug. 2025 noting roughly 92% of Canadian exports to the US enter tariff-free, with oil representing the bulk of that trade.
