The Tie that Binds: The Trials of US–Canada Energy Infrastructure

Abstract

The subject of International Energy does not get any bigger than the bilateral energy trade between the United States and Canada. Our two countries share a singular geopolitical endowment: the world's longest and highest value trading border—bounded by two oceans—where not a shot has been fired in anger since the War of 1812. We share unusual natural resources and common institutions: (1) a continent with multiple productive hydrocarbon basins and renewable energy resources, including hydroelectric, solar, and wind; (2) English common law with strong Constitutional and judicial protections for private property; (3) federal governmental systems; and (4) highly competitive energy production and transport infrastructure industries. With such institutional foundations, our two nations exhibit by far the world's oldest and most extensive pipeline infrastructure systems and dozens of international power transmission links. The long‐time lack of military conflict, stability of institutions of governance, and highly competitive business infrastructure generally has always been the source of great industrial productivity in providing low‐cost energy for consumers and businesses in North America.