The North American Petroleum Renaissance, marked by combined USMCA increases in crude oil and petroleum products production alongside relatively level demand, has positioned the region as a net exporter of approximately 2 million barrels per day over the last two years. These developments have strengthened the region’s national security, economic prosperity, and trade balance while creating substantial extra-regional export opportunities.
On December 8, 1993, NAFTA (the North American Free Trade Act) was signed into law. The signatories were Canada, Mexico, and the U.S. NAFTA sought to ease trade restrictions, increase commercial investment, and develop dispute resolution mechanisms. Since NAFTA’s ratification, merchandise trade between the member countries has doubled.
On September 30, 2018, a new agreement was ratified adjusting key terms and renamed to USMCA (U.S., Mexico, Canada Agreement).
Over the course of NAFTA/USMCA, North American hydrocarbon production and trade has increased and improved considerably.
USMCA countries’ combined increases in crude oil and products production, along with relatively level demand, have created large extra-regional export opportunities. All combined these improve the region’s national security, economic prosperity, and trade balance.
The region’s combined net crude oil and petroleum products exports have reached 2 million barrels per day, while net natural gas exports have risen to 10 billion cubic feet per day.
From the EPRINC Chart of the Week archive.