Why aren't we price makers for the domestic business? If you remove taxes, the pump price of gasoline in Saudi Arabia is less than half what it is in Canada....
Because Saudi & similar are gifted with massive oil reservoirs with many enviable attributes. Predominantly light gravity sweet crude which is better/cheaper feedstock for refining into gasoline type products. Their wellhead costs are estimated at 2-5 USD/bbl. Significatly higher production per well. Supertanker shipping infrastructure has in been in place since the 60's so they can land that crude inexpensively anywhere in the world & rapidly adapt to changing market conditions. Other OPEC export nations or Iran, Iraq, Russia... also have very low wellhead prices for similar reasons, maybe 5-10 $ range. In Western Canada, the comparable light oil reservoirs of the 50's-70's era are orders of magnitude smaller, more scattered, deeper & by now largely depleted. But we are experts in developing lower grade more challenging reservoirs/sources (which btw, Middle east also has in abundance & will get to that eventually when they have to). Western Can wellhead prices are ~20-30 USD/bbl for what is a net heavier blend. Or 30-40 USD/bbl for more recent conventional light oil, but ours is deep, tight permeability & remote, requiring higher density drilling of horizontal wells with multi-stage hydraulic fracturing. Our oil sands are vast but expensive & more remote. Broadly divided by subsurface thermal recovery or essentially mining/synth upgrading/reclamation type recovery. Greenfield projects in this class are in the 50-65 USD/bbl. Building a new oil sands facility from scratch requires billions in upfront infrastructure capital before a single barrel is produced. Interestingly, Quebec sits on vast shale oil capability. The rock is similar to what is actively being developed in USA, but it will never happen for cost & other reasons important to them. There is also significant light oil eastern offshore CAN, but $$ to develop.
So why doesnt N-Am just roll over, shut the lights out & buy from these cheaper middle east sources? Because we would be entirly dependant on foreign nations that are generally less stable & looser environmental standards. I'm sure you are aware of what transpired in the 'oil shock' era in the 70's. It was kind of a wake up call. USA now supplies 67% domestically, 20% from Canada, 2% each from the likes of Mexico/Saudi/Iraq. The shale revolution largely turned the tables. In the 70's I think about 35-40% came from middle east/other & they/we had lots of domestic light being developed to fill domestic needs. In some parts of eastern Canada we do in fact import ~15% from middle east & the rest from USA.
Your other questions collectively - why doesnt Canada refine crude here so its one stop shopping, source wellhead production -> gasoline? Mainly location & opportunity cost. In dense population areas or strategic distribution hubs like Sarnia, St. John, Quebec... western crude is shipped via pipelines constructed when when we actually built things. About 12% crude goes east (~5% to Sarnia) the rest goes south to USA. Some of these CAN refineries switch & flip between other non-CAN sources. And you are seeing the consequence of opportunity cost because oil is a world priced commodity. Building a greenfield gasoline refinery takes billions of investment. Now you have gasoline in Canada, logically constructed close to production source for operational reasons.. To ship fuel where exactly? We dont consume that volume. Its a long ways to a gas pump in Big City USA where the population/market is & it would compete with existing brownfield supply. Financial suicide. How about an shorter pipeline offshore terminal to supply Europe, far East?. Hmmm... I think that issue has been in the news quite often. How does that story go? Not in my back yard? Years of expensive consultation (code word for gatekeeper fees). I'll give you a hint, these issues simply do not come up in what amounts to dictatorship states. If the government wants something built, you get the f*ck out of the way.
You are from the auto industry? I'll flip the question around. I read ~10% of vehicles manufactured in Canada are sold domestically, 90% are exported, mainly to USA markets. Why cant you sell a 70K$ car for like 40K$ in Vancouver because after all, its made in Canada?