The transportation consumption of petroleum fuels in Canada and U. S. is analyzed and the fuel savings which could be realized through the use of more economical cars and through partial shift of automobile, air and truck traffic to rail and urban transit, are evaluated. They amount to 32% of energy and oil used in transportation. Through partial electrification of intercity rail, and urban auto, transit and truck traffic, the oil consumption could be reduced by a further 25%. The total saving of 57% in transportation corresponds to one-fifth of the total consumption of oil in Canada.