Although Venezuelan oil is unlikely to replace Canadian crude in the short term, this threat underscores the importance of trade diversification for Canada. Charles St-Arnaud of Servus Credit Union noted that Canada currently exports about 4.5 million barrels of crude oil to the United States daily, while Venezuela’s current daily output is only 1 million barrels, and the latter requires significant investment to increase production. Charles added that geography also works in Canada’s favor, as most of its crude is shipped directly to refineries in the U.S. Midwest. He believes that the cost of dispatching tankers from Venezuela to the Pacific Northwest reduces the likelihood of substitution; however, Canadian oil exports to the Gulf Coast (accounting for about 10% of total exports) could be at risk.