Fact check: Why doesn't Canada have its own oil refineries

1. Summary of the results

1. Summary of the results:

The premise that Canada doesn't have oil refineries is incorrect - Canada has 19 refineries. However, this number is relatively small compared to the US (142 refineries), especially given Canada's significant oil production capacity of 5.1 million barrels per day as of 2023. The main challenges preventing more domestic refining include the $10 billion cost of building new refineries, geographical barriers between western oil production and eastern population centers, and the fact that existing refineries aren't equipped to process oil sands crude.

2. Missing context/alternative viewpoints:

• Economic reality: The current system of exporting crude oil to US refineries and importing refined products, while seemingly inefficient, is actually more economical than building new refineries. This benefits both US refineries who have the infrastructure to process Canadian crude and major Canadian oil producers like Suncor, Imperial Oil, and Cenovus who can export their product without massive infrastructure investments.
• Infrastructure limitations: Canada faces a significant east-west infrastructure gap, with most pipelines flowing north-south. The Trans Mountain pipeline expansion has increased export capacity but hasn't addressed domestic refining needs.
• Government stance: The Conservative government has historically favored market-driven solutions over government intervention, though Alberta's government has explored subsidized refinery projects like the North West Upgrading project.

3. Potential misinformation/bias in the original statement:

The question implies Canada lacks refineries entirely, which is false. It also oversimplifies a complex economic and infrastructure issue into a simple question of ownership/capability. The reality is that Canada loses an estimated $19 billion annually due to lower oil prices in the current system, but the cost and complexity of changing this system through new refineries would be even greater. This creates a situation where both maintaining the status quo and building new refineries have significant drawbacks, making it more complex than the question suggests.