Canada–United States Energy Trade: The $126 Billion Lifeline

Lifelines Power North America

Every day, the equivalent of more than four million barrels of oil, eight billion cubic feet of natural gas, and enough clean electricity to power millions of homes flows south across the world’s longest undefended border. In 2024, this invisible river of energy was worth approximately US$126.6 billion — making energy by far the most valuable commodity traded between Canada and the United States.
For Americans, Canada is not just a neighbor; it is the single largest, most reliable, and most secure source of imported energy. For Canadians, the U.S. market is essentially the only buyer for the vast majority of the country’s oil, natural gas, uranium, and surplus hydroelectricity. The relationship is less a “trade” in the classic sense and more a deeply integrated continental energy system.

Energy Source	Volume Exported to U.S.	Value (2024)	U.S. Market Share Supplied by Canada
Crude Oil	4.1 million barrels per day	~$84 billion	62% of all U.S. crude imports
Natural Gas	8.5 billion cubic feet per day	~$29 billion	99% of all U.S. natural gas imports
Refined Products & NGLs	~300,000 barrels per day	~$11 billion	—
Electricity (mostly hydro)	36.1 terawatt-hours (net)	~$2 billion	85% of all U.S. electricity imports
Uranium (U₃O₈)	~3,500 tonnes	~$600 million	~25% of U.S. reactor fuel
TOTAL		~$126.6 billion

Innergex investing in all kinds of renewable energy

Richard Blanchet is the senior vice president for the western region at Innergex Renewable Energy Inc. and In recent history Innergex made a major acquisition of Cloudworks Energy in British Columbia, “We’ve been expanding the past 11 years, especially in British Columbia, and today 49 percent of revenues for Innergex are coming from B.C..” Innergex is generating power from projects spread over three provinces. and each jurisdiction has a concentration on First Nation economic development as the “core part of our development.”

In B.C., Innergex is operating 9 run-of-river renewable energy projects and presently engaged in the construction of two new projects “pipeline development of, and two projects in run of river renewable energy for 178 MWh. “We are very busy and these two new run-of-river projects together represent $270 million investment in BC,” said Blanchet. The really important statistic is the employment situation with First Nations. First Nations occupying well over 40 percent of the jobs in the largest construction project. company. “We are deeply engaged in First Nations training and capacity building and the fact is we have second and third generations of First Nations in our projects. These folks are advanced and moving up the ladder into skilled jobs, providing mentorship, building the social licensing (or social capital) of their communities.”

Innergex takes pride in their long record of successful First Nation partnerships, “and we look at the long term plans for First Nations in these partnerships toward sustainable development of energy projects and what the projects mean in these communities.” Communities are transforming in very positive directions like the Douglas First Nation who took on a hydro project with Cloudworks at the beginning of the last decade. “These projects are building the business activities in local communities through sub-contracting and business building. A good example is the Umbata Falls hydro project in Ontario with Pic River Ojibway, 51 percent owned by the First Nation and opened for power generation in 2009,” says Blanchet. “Here we are starting to see the benefits to these communities.”

Founded in 1990, Innergex formed in anticipation of a call for independent power production by Quebec Hydro. “The first call for private power production in Quebec came in 1991,” and Innergex was successful and expanded to Ontario, then B.C., then the USA in early 2000. “We have an office in B.C. with 30 staff, nine projects in operation in B.C.. In Ontario we have three four operational projects and in the USA one.” In Quebec they run seven hydro projects and five wind farms.

Blanchet says, “The First Nation aspect has been a key success in our development. It was during the first few projects in Quebec that this came to be at the centre of Innergex core values. We asked ourselves, what is in it for the First Nations? These communities will see the impact in construction and will see change occur in their communities and these communities must have something in return.”

In B.C. presently, the Kwoiek Creek Hydro Project is under construction near Lytton in the Fraser Canyon, “an area that has been bereft of opportunity with downturns in forestry, but now we have a $180 million investment underway with 90 plus jobs.” There are new skilled workers, and money is being spent with on-site training that will be opening the doors to employment on other projects. Blanchet notes, “And that's the thing about these projects, they are capital intensive.  It's a huge commitment in up-front costs while operational costs are low and renewable energy flows for decades. Water rentals are becoming an ongoing expense paid to the province and apparently the province of B.C. has started arranged to share an important part the water rental revenues they receive from us revenue-sharing with the First Nations in the province to share an important part something like 70 percent of provincial water rentals.”

The future of Innergex is based on building partnerships based on core values of integrity, responsibility, transparency, teamwork, and resource-sharing. “Most projects involve First Nation in the review process, and we provide capacity for land use studies and other background proceedings. These projects are long term and we obtain financing from investors like pension funds. These investors like the stability of renewable energy.” 

Innergex did a solar project recently in Ontario, “33 MWh came into operation in Ontario, and that's a new one. We arrayed the solar panels on 300 acres of non-arable land.” Blanchet came to the west coast to work in Vancouver eight years ago, “I commuted from Quebec for the first two years,” he laughs.

“Things are advancing very well in the Fraser Canyon. We built a tram to transport building materials, and the neat aspect of the tram is the way it travels from reserve to reserve at Kanaka Band.” This tram may have a future since they had been losing access to their side of the river, it’s a long drive and under certain conditions it is a long with very bad driving conditions. Presently they are pouring concrete at power house (on-reserve), and at site the construction of penstock underway, with the transmission line under construction. Innergex expects Kwoiek to be generating electricity beginning in October 2013. 

New power makes Douglas First Nation feel connected

The Lower St'at'mx First Nations have a world of opportunity at hand as they become part of  energy developments that make new opportunities available. Douglas First Nation partnered with Cloudworks Energy to help bring hydro-electric power into Douglas First Nation for the first time in history. This benefits Douglas and other In-SHUCK-ch member-communities of the St'at'mx Nation.
     

There are less than a dozen villages left in the St'at'mx Nation, and four of those are known as In-SHUCK-ch, but the people of these villages and town-sites have occupied the deep valleys from Mt. Currie to Harrison Lake since time immemorial. A woman named Cinnamon from Mount Currie talked one afternoon on a mountain-top while looking down at one of the lakes, Seton Lake, east of Anderson Lake. She said her grandmother recalled the view from that mountain-top at night, that it sparkled like thousands of stars congregated around a dark void. Cities of people once surrounded these lakes, and the sparkling 'stars' were summer campfires. The pithouses were countless and the artifacts remain everywhere to be seen.
     

The St'at'mx Nation was reduced to 11 reserves, and this year hydro power will be available for the first time in history to Douglas First Nation Indian Reserves. These communities can envision the future with new optimism. Families can grow in the villages, other families can return, and business and employment opportunity will become an everyday reality.
     

Douglas First Nation is in the power business now. They generate electrical energy from five (of six) run-of-river hydro stations. The last one will be finished this year. They are partners with Cloudworks and have members with the latest construction skills working for Kiewit and Sons, general contractor on the Douglas First Nation/Cloudworks Energy series of run-of-river hydro projects. Nick Andrews is in liaison with Douglas First Nation for Cloudworks Energy, “It's a great accomplishment and great thing for the communities.” Cloudworks Energy started negotiations in 1999 toward this end. “You can see benefits already. Communities have new infrastructure and capacity for developments like new housing. They have growing communication infrastructure. They have electricity to grow with and they are starting to feel more connected,” literally and figuratively.
     

Other benefits to the power projects partnership include jobs in maintenance of the facilities. “Cloudworks is employing people in Douglas communities to help in the environmental monitoring and operations of the projects.  This means a commitment to training in areas such as mill-writing, environmental data collection, and construction.  Having people from the community working with us to bring sustainable economic development to their community is a great thing.”
     

Andrews alludes to the construction phase being a big boom in jobs that is gradually winding down, and the run-down of construction phases are passing by. The current construction program will be completed in 2010. This means Cloudworks will be moving on to new projects and they are one of the companies interested in the BC HYDRO call-for-power reportedly coming before spring. Meanwhile In-SHUCK-ch communities have built a great relationship with BC Transmission Corporation and Clare Marshal, Manager of Aboriginal Relations at BCTC is on a business development drive. One example of BCTC's Aboriginal business development initiative comes about from dialogue with the In-SHUCK-ch communities near Pemberton.
     

BC Transmission Corporation lines cross traditional territory of the In-SHUCK-ch, in fact, high-voltage BC HYDRO electrical capacity is generated in a site called Seton Portage with another reserve of the St'at'mx. BCTC entered a dialogue with In-SHUCK-ch leadership. Following dialogue Timberline Natural Resource Group joined the communities to train a team of vegetation managers for BCTC operations. The result was establishment of In-SHUCK-ch Development Corporation that works “to ensure electricity is transmitted uninterrupted while making rights-of-way and roads safer.”
     

Meanwhile Cloudworks continues to work in partnership with First Nations to bring much-needed green energy solutions to communities. “From here we work on projects in Chehalis and others with Douglas, and hopefully others up the valley in Sk't'ina and Shew'tk'wa. “Sustainable development is our guidepost. We are prudent in the use of infrastructure in remote areas. Our expertise is available for other opportunities.” One look around the province shows many places where Cloudworks can put its investments to work – one opportunity is the Highway 37 Transmission Line Proposal in Northwest B.C.. Other opportunities beckon on Vancouver Island, following the success of Hupacaseth and now Tla-o-qui-aht building run-of-river and making it their economic advantage.
     

Andrews notes, “In BC, people want their energy from clean and natural sources, and we believe that they will seize opportunities to switch from gas and diesel.  So we believe the demand for good energy projects will continue.  Working closely with First Nations is a vital part of creating projects which balance provincial goals with those of local communities.” 

Electrifying potential in the Pacific North West

British Columbia energy project

The Highway 37 Project of electrical transmission is important news for economic development in the province, according to Pierre Gratton, President and CEO of the Mining Association of BC. The transmission line creates an array of opportunities within the North West Pacific, especially Kitimat Valley, last major water basin in the world to await such economic expansion.
     

Gratton is talking about electrical transmission that could transform a region for all those who live, work, and play in North West B.C., not the least of which would be First Nation communities. He told Vancouver Board of Trade and media this month, including First Nations Drum, about a recent MABC study showing the potential of this backbone-sized infrastructure project.
     

The study of last Sep. ’08 said the Highway 37 Project will attract more than $15 billion in investment, create 10,700 jobs, and generate $300 million in annual tax revenues to governments.
     

Here’s something else it would do, “provide access to green power for up to ten known mining projects,” and furthermore, “the North West possesses the greatest new potential in hydro power development in the province, the study identifying 700MW of small hydro and up to 1,500MW of wind projects,” says Gratton.
     

While at the same time as MABC is making opportunity clear other developments are occurring, including a $7 million investment fund created by Ecotrust Canada administered by First Nation economic developers like TRICORP in the Pacific North West. This fund’s goal is creation of First Nation-owned Green Energy hydro developments in Gitxsan, Nisga’a, Tsimshian, and Haida lands and waters (but not exclusively those nations).
     

The MABC report stated that “Immediate greenhouse gas emission reduction from the shutdown of current diesel generation combined with the estimated avoided emissions from the generation of green energy (of approved and licensed run-of-river projects), is almost 100,000 tonnes of CO2e or the equivalent of taking over 17,000 cars off the road.”
     

First Nations Drum reported (May 2009) on a unique energy transmission company in North Ontario owned exclusively by First Nations along James Bay. Five Nations Energy Inc. is owned by Ft. Albany, Kashetchewan, and Attawapiskat First Nations and two other tribal affiliates in Timmons, Ontario. FNEI supplies electricity to their own communities and worked closely with DeBeers Victor Diamond Mine on a 90km extension to the property operating in Musqugewon Cree Nation.
      

Looking skyward for economic opportunity and diversity
      

Solar power is energizing the T'Sou-ke Nation on the southern end of Vancouver Island (west and north of Victoria, B.C.), in a project named “Sum-SHA-Thut”, Sencoten for “sunshine.” Chief Gordon Planes, T’Souke Nation said, Sum-SHA-Thut inspires remote and diesel dependent communities to learn about solar power.
      

T’Souke Nation is aiming at drastic reductions in fossil fuel emissions, hoping to improve the health of First Nations people by reducing particulates and pollution-related diseases. Sum-SHA-Thut will develop sustainable “green-collar” jobs in communities hit hard by job losses in forestry, fisheries, and recession.
     

T’Souke’s leadership will contribute to First Nations stepping into green-technology energy solutions. "For most of our history First Nations were rooted in the traditions of sustainable living and respect for the land," says Planes, "and the Sum-SHA-Thut project is the first step in achieving energy self-sufficiency once again." 
      

"Starting with support from the Innovative Clean Energy Fund, T'Sou-ke Nation is making a real community success of their solar energy project," adds Small Business, Technology and Economic Development Minister Ida Chong, who was onsite in May 2009 to open the Sum-SHA-Thut photovoltaic system.
      

"Energy self-sufficiency is a contemporary objective linked to T'Sou-ke Nation's deep cultural connection to the natural environment,” says Minister Chong, “and will play a vital role in supporting future economic opportunities.” 
      

Chief Planes notes the T'Sou-ke Nation is sponsoring a Solar Gathering on Sat., Jul. 11, 2009 to promote awareness of solar voltaic and offer insights into financing. “It will be consistent with our Longhouse ideals,” says Planes. “We are giving this information away free of charge to show how sustainability can be achieved once again, using the power of the sun, wind, and sea.” 
      

“T’Sou-ke is a proving ground for community-wide solar hot water,” said Joe Thwaites, from Taylor Munro Energy Systems, with respect to the partnership with T’Souke, “a project that demonstrates a sustainable alternative to diesel for remote First Nations communities.”  
      

Making solar power accessible involves ramping up training, “The customized training that graduated nine trainees in May 2009 breaks ground by teaching in an ‘oral-tradition’ approach, which respects culture and harnesses the diverse skills of the community as both teachers and learners,” said Donna Morton of First Power, a unique business and non-profit organization dedicated to supporting First Nation energy autonomy.
      

Morton says the program is tailored to promote learning as a team, “orally and hands-on,” and 60 percent of the PV equipment in Sum-SHA-Thut was installed by First Power trained personnel. (Donna notes the project has reduced BC Hydro bills in T’Souke by 15 percent and greater reductions will accrue.)
      

Alec Tully, Public Affairs Officer, B.C. Ministry of Small Business, Technology, said the T’Souke project, “is the largest Aboriginal-community-based solar project in the world. It’s about community development,” and the Band Office and a new fisheries facilities are solar powered, with 25 homes on the internal system for hot water. Alec notes, ICE Fund will spend over $75 million in three years to bring projects like Sum-SHA-Thut into being.

A new array for gathering hydro power

The EnCurrent Turbine patented by New Energy Corp. of Calgary, Alberta, is making the rounds in North American waters and the system is proving to be a great adaptation in all kinds of high-flow water systems like Calgary city water outflows, steep Alaskan rivers, high-flow tidal currents on the Inside Passage of Vancouver Island, and icy winter waters of Manitoban rivers.

“We put a 5KWh system in the Ruby River in Alaska. Initially they called for 2.5 KWh but our system was able to pull out that much more electricity from the river current,” said Clayton Bear, one of the principals of New Energy Corporation.

“In Manitoba we tested year-round. At present we are looking at two things: further expansion in Alaska and access to the Rural Electrification Program in B.C.,” said Bear, “which is mostly First Nations accessing the program.”

Elsewhere in the country Clayton attended a conference this spring in Moncton looking into the potential for energy in the Maritimes. “The conference was looking at big projects in the Bay of Fundy. Many companies are looking because there is so much power in that water. The tide rises 10 m per second. It’s an incredible amount of energy.”

The conference showed that Bay of Fundy presents many unresolved technical challenges. The generators as yet cannot withstand the beating of that much water. “They are talking about smaller projects in the immediate future using estuaries with high tidal flows off the bay.”

Meanwhile Bear and business partner Robert Moll have EnCurrent Turbines arrayed in five, ten and 25 KWh systems in Canoe Pass, Manitoba, and Alaska on the Yukon River. The next phase for New Energy is to take their tidal project in Canoe Pass (near Quadra Island on the B.C. coast) to the 250 KWh scale with an array of EnCurrent Turbines. The ultimate goal is to extract five to MWh out of the tidal flow around Quadra Island.

At OREG (Ocean Resource Energy Group) Chris Campbell noted the province is organizing a series of regional meetings with First Nations in 2009 and meanwhile the federal government has put some money into an ocean wave energy project with SyncWave in Ahousaht, a semi-remote First Nation community found outside Tofino in the Nuu chah nulth Nation.