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America Produces Enough Oil to Meet Its Needs, So Why Do We Import Crude?

9K views 114 replies 25 participants last post by  jpd80 
#1 ·
America Produces Enough Oil to Meet Its Needs, So Why Do We Import Crude?

"NBC News is reporting that the U.S. intends to ban imports of Russian oil today. That has caused another jump in already surging oil prices, but for many Americans the most surprising thing about this is that America imports Russian oil at all, let alone so much that it accounts for around eight percent of total U.S. oil usage. I mean, haven’t we been told repeatedly over the last five years or so how great it is that the U.S. has become energy independent?

Well, yes, we have. But that statement, while true in some ways, covers up several decades of short-sighted energy policies."


Discuss......
 
#3 · (Edited)
Very true.

Which is why I think America needs to be the one on the forefront of EV tech, not necessarily to replace ICE's but definitely to be THE country supplying the tech to places that are replacing/outlawing ICE's. That buys us time to switch, we're a pretty large, open and diverse country....for us to switch over is going to take far longer and more advanced tech. Might as well have other countries buy from us to foot the bill to pave the way for our inevitable switch.
 
#4 ·
Whether we produce our own oil or not doesn't matter, it is a global commodity. Crude isn't going to sell for let's say $75/barrel in the US when customers around the world are willing to pay $125/barrel. Oil companies will look to maximize their profits.

Have a look at the Weekly Petroleum Statistics issued by the EIA, a division of the Dept. of Energy.

EIA

By tomorrow, a weekly update will be issued.

Go to the Crude Oil page (see tab at top). About halfway down, see the Production Data.

We are producing 11.9 million barrels per day (mbd) of crude oil currently, we are importing about 6.4 mbd and exporting about 3.6 mbd.

Now check the Gasoline page.

We are refining about 9.8 mbd of gasoline currently, we are importing about 0.9 mbd and exporting about 0.9 mbd.

Now check the Distillate page (includes diesel fuel and home heating oil).

We are refining about 5.1 mbd of distillate currently, we are importing about 0.2 mbd and exporting about 1.2 mbd.

So there are imports and exports of both crude and refined products. These are probably driven by locale and market opportunities.

Now go back and look at the inventories (stocks) of Crude, Gasoline, and Diesel. They are all below the 5-year average.

These low inventories drive prices higher.
 
#16 ·
You might want to look at the Weekly Petroleum statistics issued today. It describes the amount of oil that is being produced and exported. It also discusses that dynamics of moving oil and products from where it is produced to where it is consumed.

Updated EIA

(Also, see Post #4).

Here is the first line in the Analysis:

"U.S. exports of crude oil and petroleum products reached a record of 9.8 million barrels per day (b/d) during the week of May 27 (based on a four-week rolling average)".
 
#28 ·
Everything I've read (from the American Petroleum Institute) says that our oil is too light and sour to produce the same amount of gasoline per barrel of oil and still be competitive price wise. We could do it, but it would more than double the price per gallon of gasoline due to lower yield. That's why we sell ours.
 
#30 ·
Here is a recent article, "White House Weighs Fuel-Export Limits as Pump Prices Surge".

Bloomberg

From the article:

"In meetings with administration officials in recent weeks, refining executives have stressed that it’s incongruent to both talk down capital investments in the refining sector while pleading for more of them, two of the people said".
 
#35 ·
@AWHoden

I found myself quoting almost every one of your posts to reply to, saving space I'll summarize............

Oil is a GLOBAL COMMODITY, so the ultimate price is boiled-down to supply/demand, however, like almost all investable assets, there is more to it than just that, the markets contain a varied level of speculation, be it: $KR, $GM, $RIVN, $AMZN, $TSLA, $BTC or $WTI - the market is about where something is going, not where it is currently at.

Global demand growing, combined with product from certain regions deemed "off-limits" combined with (and I quote) "We're going to wipe it out" and "“I Guarantee You We're Going To End Fossil Fuel” and actions that follow that mentality is why oil has gone (basically) straight-up since November of 2020.....

Selectively "fact-picking" 'production' 'permits' 'leases' 'etc' is disingenuous and only fools the ignorant.

@Extreme4x4 pretty-much hit the nail on the head, your replies only confirm and solidify her comments.
 
#84 ·
@AWHoden

I found myself quoting almost every one of your posts to reply to, saving space I'll summarize............

Oil is a GLOBAL COMMODITY, so the ultimate price is boiled-down to supply/demand, however, like almost all investable assets, there is more to it than just that, the markets contain a varied level of speculation, be it: $KR, $GM, $RIVN, $AMZN, $TSLA, $BTC or $WTI - the market is about where something is going, not where it is currently at.

Global demand growing, combined with product from certain regions deemed "off-limits" combined with (and I quote) "We're going to wipe it out" and "“I Guarantee You We're Going To End Fossil Fuel” and actions that follow that mentality is why oil has gone (basically) straight-up since November of 2020.....

Selectively "fact-picking" 'production' 'permits' 'leases' 'etc' is disingenuous and only fools the ignorant.

@Extreme4x4 pretty-much hit the nail on the head, your replies only confirm and solidify her comments.
I get my information from the American Petroleum Institute, not Fox or MSNBC. Everyone should try that.
 
#39 ·
See Post # 35


Look at the profits being made off $118/barrel pricing versus over $180/barrel pricing during the war, blatant profiteering happening and being passed on throughout the economy to us poor suckers on the end of the chain….but then, the reserve bank decides to punish us further with savage interest rate increases pushing the US towards a recession and job losses…a lot of Americas businesses are acting like yankee traders, profiteering off everyone and poo pooing any sort of wage increase….
Nonsense.............

Ignoring all the cost-savings and debt reduction they've done?
- Energy companies learned to be profitable in the $40-$50 range, the ones that didn't went broke.

"Poo Pooing any sort of wage increase"? Sure inflation is eating up the recent gains, but where do you get that labor cost haven't gone up?
 
#37 ·
Look at the profits being made off $118/barrel pricing versus over $180/barrel pricing during the war, blatant profiteering happening and being passed on throughout the economy to us poor suckers on the end of the chain….but then, the reserve bank decides to punish us further with savage interest rate increases pushing the US towards a recession and job losses…a lot of Americas businesses are acting like yankee traders, profiteering off everyone and poo pooing any sort of wage increase….
 
#46 ·
To answer the original question - refineries need a wide range of oil types to meet demand for the huge range of oil-based products but "local" oil fields will usually produce similar types of oil.

Most of the North Sea oil produced by the UK is exported around the world as it's a "fine" oil, we then import other grades of oil from various parts of the world.

Oil really is a global business.
 
#47 ·
Most of the North Sea oil produced by the UK is exported around the world as it's a "fine" oil, we then import other grades of oil from various parts of the world.

Oil really is a global business.
Most of the North Sea oil is produced by the Chinese who own the two biggest North Sea oil fields Rupert, Chinese are now selling the business as it an old ageing oil field that polluting more producing a lot less oil, not a lot left Rupert.
 
#60 ·
Can you believe the audacity of the working classes asking for a wage increase? The NERVE. I mean, I deserve a raise of course, but someone who I deem less worthy than myself or someone who does a job that I would never stoop to doing? They just need to learn to live with less.
 
#66 ·
Don't disagree, but we should also lower the barriers for entry to reduce the incentive for illegal immigration and stop playing this two step where we say we don't want any unskilled immigrant labor and then have every farm and roofing company grabbing a truck full of amigos every day. 120 years ago all you had to do was hop off a boat and prove you didn't have typhoid.
 
#67 · (Edited)
I've always favored reducing the size of our government. Not just the bureaucracy, but the people on top. The REAL problem. Permanent layoffs of half the Senators and Representatives in congress.

Let alone what we'd save directly in their wages (and bennies). What would you prefer, ONE legislator lining their pocket, and spending taxpayer money, or TWO legislators doing so? This would have to save BILLIONS! If it works, maybe we'll have a second round of layoffs. Then we can move down to the state level.

The founding fathers never envisioned 535 people doing that job.
 
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#107 ·
the U.S. does produce enough oil to meet its own needs, but it is the wrong type of oil. Crude is graded according to two main metrics, weight and sweetness. The weight of oil defines how easy it is to refine, or break down into its usable component parts, such as gasoline, jet fuel and diesel.
welcome to the forum
 
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