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Page added on December 13, 2018

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Last Week, The US Ended Its Reliance On Foreign Oil

Last Week, The US Ended Its Reliance On Foreign Oil thumbnail

For the first time in 75 years, the U.S. became a net exporter of oil last week.

From Bloomberg:

The shift to net exports caps a tumultuous week for energy markets and politics. OPEC and its allies are meeting in Vienna this week, trying to make a tough choice whether to cut output and support prices, risking the loss of more market share to the U.S.

“The week started with Qatar leaving OPEC; then a mysterious U.S.-Saudi bilateral meeting in Vienna; followed by a canceled OPEC press conference, and now the latest news that the U.S. turned last week into a net petroleum exporter,” said Helima Croft, commodities strategist at RBC Capital Markets LLC and a former analyst at the Central Intelligence Agency.

The U.S. sold overseas last week a net 211,000 barrels a day of crude and refined products such as gasoline and diesel, compared to net imports of about 3 million barrels a day on average so far in 2018, and an annual peak of more than 12 million barrels a day in 2005, according to the U.S. Energy Information Administration.

The EIA said the U.S. has been a net oil importer in weekly data going back to 1991 and monthly data starting in 1973. Oil historians that have compiled even older annual data using statistics from the American Petroleum Institute said the country has been a net oil importer since the mid-1940s, when Harry Truman was in the White House.

This is huge. It has been the goal of American politicians to be “energy independent” since at least the 1970s. For this brief moment, the U.S. has achieved that goal.

How did the U.S. do it? There were a few small things that contributed a little bit towards this underreported occasion. American drivers have increased their fuel efficiency thanks to technological developments such as hybrids and better-designed vehicles. Industries have slowly moved away from petrochemical-based plastics and have sought out plant-based alternatives. Finally, we have increased the use of alternative fuels such as ethanol and completely electric cars.

But the biggest and easily the most important factor in America’s newfound energy independence has been the fracking boom. Fracking has brought millions of gallons of American oil that was thought to be unrecoverable or even unknown.

Here’s the kicker, American oil exports are set to increase over the next few years and decades.

U.S. crude exports are poised to rise even further, with new pipelines from the Permian in the works and at least nine terminals planned that will be capable of loading supertankers. The only facility currently able to load the largest ships, the Louisiana Offshore Oil Port, is on pace to load more oil in December than it has in any other month.

The massive Permian may be even bigger than previously thought. The Delaware Basin, the less drilled part of the field, holds more than twice the amount of crude as its sister, the Midland Basin, the U.S. Geological Service said Thursday.

Unfortunately, this period of energy independence is set to be brief. The U.S. still imports millions of barrels of oil a day to feed its refineries. Because of those massive oil imports, the U.S. is still at the mercy of the global price of oil and Middle Eastern geopolitics. But much of the fuel that is made at the refineries are now exported as well.

The U.S. is now a major player in the global oil markets. It can new pursue its own petrodiplomacy as Europe seeks to break free from Russia’s energy grip and puts some needed distance from Saudi Arabia. More importantly, the economies of Louisiana, Texas, and other energy-producing states are set to benefit.

the hayride



35 Comments on "Last Week, The US Ended Its Reliance On Foreign Oil"

  1. Mark Ziegler on Thu, 13th Dec 2018 9:14 am 

    There must be something wrong with my math.

    In 2017, the United States consumed a total of 7.28 billion barrels of petroleum products, an average of about 19.96 million barrels per day.
    Where does the Hayride get 19.96 million barrels a day from fracking or anywhere eles?

  2. Duncan Idaho on Thu, 13th Dec 2018 9:30 am 

    They are math challenged.
    If you produce 11 million barrels a day, and use 19 million, you obviously don’t have a surplus.
    Maybe they are Repugs? It would be possible then.
    Reality is something one ignores.

  3. shortonoil on Thu, 13th Dec 2018 10:10 am 

    Funny article! The US imported 8 mb/d and exported 2, but the US ended its reliance on foreign oil? Guess math wasn’t this guys strong suite?

  4. shortonoil on Thu, 13th Dec 2018 10:19 am 

    Funny article! The US imported 8 mb/d and exported 2, but the US ended its reliance on foreign oil? Guess math wasn’t this guys strong suite? The US will be a major player until shale’s legacy decline over comes its ability to bring new oil on line. With the 2018 legacy decline at 1.09 mb/d that should be in about three months. Now its time to go read some better written fairy tales.

  5. Anonymous on Thu, 13th Dec 2018 10:48 am 

    The US refineries are oversized for the US market. So some of the oil we bring in is just processed and sent back out (we are not consuming the production in our markets, just processing for external markets). If you look at consumption in the US of crude AND products, we were actually briefly net exporters last week.

    https://www.eia.gov/todayinenergy/detail.php?id=37772

    Kind of an outlier and the week after we popped back to net imports, but still the trend is clearly to less and less imports and in a year or two we will probably consistently net export.

  6. I AM THE MOB on Thu, 13th Dec 2018 10:53 am 

    No, The U.S. Is Not A Net Exporter Of Crude Oil.”
    No, The U.S. Is Not A Net Exporter Of Crude Oil

    https://www.forbes.com/sites/rrapier/2018/12/09/no-the-u-s-is-not-a-net-exporter-of-crude-oil/?fbclid=IwAR2Gd4Nwsl7CEiq9pgjhdC2KNEwnR1szo5nM-_1htimlHNrhexTt6vH8juY#405a80a84ac1

  7. Anonymous on Thu, 13th Dec 2018 10:55 am 

    Short, see the EIA link I showed.

    For that magical week, we imported 7.2 and exported 3.2 for net imports of 4 MM bopd of crude.

    However in products, we imported 1.6 MM and exported 5.8. So net EXPORTS of products was 4.2.

    4 – 4.2 = -0.2. So we had “negative imports” (e.i net exports) of crude AND products.

    This is so painful to have to explain this. Rock has gone through the concept for years.

  8. Duncan Idaho on Thu, 13th Dec 2018 11:03 am 

    “The US Ended Its Reliance On Foreign Oil”
    “This is so painful to have to explain this.”

    Natures way of telling you something is wrong—

  9. Antius on Thu, 13th Dec 2018 11:21 am 

    The US has ended its dependence on foreign light oil. What a shame that its trucks, trains, planes and ships cannot run on gasoline or LPG. At present, tight oil is not very valuable. There is far less demand for it because refining it produces relatively little diesel, which is what runs most of the world’s physical economic infrastructure. To make matters worse, it has higher production costs than conventional crude due to high well decline rates. So the US shale industry is producing something that is not very valuable and it is doing so at high cost.

    Could we reconfigure global infrastructure to run on lighter fuels? Certainly. The problem is that it would take time and imply cost. Everyone is going broke at the moment.

  10. Davy on Thu, 13th Dec 2018 12:48 pm 

    “This is so painful to have to explain this. Rock has gone through the concept for years.”

    Idaho, does not want to hear this he is dead set on the numbers do not add up. It is what it is, idaho. I quit listening to the amatures lately and focus on the professionals. I am an amture myself so I listen. Rock and Nony know what they are talking about.

  11. Gaia on Thu, 13th Dec 2018 2:33 pm 

    The US is collapsing under the weight of its own greed.

  12. Davy on Thu, 13th Dec 2018 3:00 pm 

    Further to my above comment. I don’t care if the numbers add up at all. I choose to continue to listen to the industry shills, cause the fake facade of America being great again and being energy independent means far more to me than the premature death of my kids from runaway climate change.

    I’m not sure why this might be relevant? But here is a quote I remember hearing somewhere.

    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

    Oh, and Duncan Idaho. Get out of my country. Your not welcome here.

    DEPORT DUNCAN IDAHO!

  13. R.G. on Thu, 13th Dec 2018 3:50 pm 

    Here’s something the Western nations could do:

    1.Have fiscal responsibility and respect for the taxpayers.
    2.Protect individual freedom and freedom of speech.
    3. Protect national sovereignty and common laws.

  14. GetAVasectomyDudeLifeSuckAss on Thu, 13th Dec 2018 3:52 pm 

    For me a better indicator of oil depletion and net energy decline is the disintegration of the social climate in Western nations.
    Social chaos will precede gasoline and diesel shortage in Westerns nation

    Well it seems that the Yellow vest have started the begging of the social chaos in Western

    Canada Yellow vest against migration

    https://www.youtube.com/watch?v=2GV0s0qqS8s
    https://www.youtube.com/watch?v=4EtdfgtjG-g

    Britain Yellow protest

    https://www.youtube.com/watch?v=CQScSGj8uLI

    I heard about some in Holland.

  15. R.G. on Thu, 13th Dec 2018 3:55 pm 

    There needs to be transparency and accountability in the government (on all levels).

  16. Mark Ziegler on Thu, 13th Dec 2018 4:10 pm 

    Canadian Tar Sands and fracked oil is not usable oil. It has to be diluted with real crude in order to refine it. I doubt the US has enough domestic crude to dilute 10 million barrels a day to refine. Also the US has no use for bi products left from refining so foreign buyers can have that garbage. I am not sure if the dilution is 30/70 or 50/50 percent but the US needs a lot of real crude to refine cracked oil.

  17. GetAVasectomyDudeLifeSuckAdd on Thu, 13th Dec 2018 4:13 pm 

    Yellow vest protest web site for Canada. It seems that Women are running it. Canadian men have been completely silence by years of Canadian feminism and beta cuck like Trudeau.
    Good think the women are running it because women are consider victims so it is more difficult for Trudeau to attack the movement.

    https://yellowvestscanada.net/events.html

  18. This is JuanP on Thu, 13th Dec 2018 5:21 pm 

    Davy on Thu, 13th Dec 2018 3:00 pm Further to my above comment. I don’t care if the numbers add up at all. I choose to continue to listen to the industry shills, cause the fake facade of America being great again and being energy independent means far more to me than the premature death of my kids from runaway climate change. I’m not sure why this might be relevant? But here is a quote I remember hearing somewhere. “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” Oh, and Duncan Idaho. Get out of my country. Your not welcome here.

    DEPORT DUNCAN IDAHO!

  19. makati1 on Thu, 13th Dec 2018 5:30 pm 

    “Last Week, The US Ended Its Reliance On Foreign Oil” and Santa’s elves are loading his sleigh. LMAO!

  20. Anonymouse on Thu, 13th Dec 2018 6:13 pm 

    There is absolutely no penalty in the amerikan empire, for printing, or disseminating fake news and or information. None whatsoever. In amerika, its one big, anything goes, fact-free zone from sea to shining sea. Slant, spin, or simply bald-face lies are the order(s) of the day in the land of freedom fries. In amerika, ‘freedom’ means the freedom to say and report anything you like, Even when it happens to be complete and utter goatshit. No one will care, or mind, because pretty much everyone else is doing the exact same thing.

  21. Davy on Thu, 13th Dec 2018 6:17 pm 

    anon, where is it different you rabid anti-American? No place is it much better. This is the nature of the world now get a grip. Go back to being a sock cop you make more sense.

  22. Davy on Thu, 13th Dec 2018 6:18 pm 

    “Last Week, The US Ended Its Reliance On Foreign Oil” and Santa’s elves are loading his sleigh. LMAO!”

    We are doing better than Asia that is heading in the wrong direction. LOL back at you billy

  23. makati1 on Thu, 13th Dec 2018 6:30 pm 

    Absolutely correct Anon. Lies are the order of the day and the only thing keeping the US going. Everything from the unemployment numbers, the inflation rate and the GDP are all koolaid for the gullible serfs. Reality would destroy Americans.

  24. Davy Intentity Theft on Thu, 13th Dec 2018 6:33 pm 

    This is JuanP on Thu, 13th Dec 2018 5:21 pm

  25. Anonymouse on Thu, 13th Dec 2018 6:34 pm 

    Awww, looks like widdle delusional davyturd is mad about something, again.

  26. Davy on Thu, 13th Dec 2018 6:40 pm 

    I think you are mad anon because you said something but it ended up being lame. At least you are trying to say something. That is a start. Normally you are just doing zombie mind gaming. You know your sock cop stuff and your ass kissing with billy.

  27. BillT on Thu, 13th Dec 2018 6:47 pm 

    Sorry for losing my emotional shit again y’all.

    makati1, there are billions around the world who aren’t exposed to TV. I have no doubt that you could be one of them, and sorry about the ‘little room’ emotional outburst. I have no clue what size of a room you’ve lived in for the past 20 years. That was stupidity on my part.

    If I could get my anger

  28. JuanP on Thu, 30th Jun 2016 4:56 pm on Thu, 13th Dec 2018 6:48 pm 

    I think I could use my antisocial, psychopathic, sociopathic skills to convince people to vote for Trump. I can be very convincing when I want and I am excellent at manipulating people.

  29. Davy Identity Theft on Thu, 13th Dec 2018 6:52 pm 

    JuanP on Thu, 13th Dec 2018 6:48 pm

  30. Davy Identity Theft on Thu, 13th Dec 2018 6:53 pm 

    BillT on Thu, 13th Dec 2018 6:47 pm

  31. This is BillT on Thu, 13th Dec 2018 7:00 pm 

    Davy Identity Theft on Thu, 13th Dec 2018 6:53 pm

    BillT on Thu, 13th Dec 2018 6:47 pm

  32. Davy sock on Thu, 13th Dec 2018 7:03 pm 

    This is BillT on Thu, 13th Dec 2018 7:00 pm

  33. This is BillT on Thu, 13th Dec 2018 7:04 pm 

    Davy sock on Thu, 13th Dec 2018 7:03 pm

    This is BillT on Thu, 13th Dec 2018 7:00 pm

  34. makati1 on Thu, 13th Dec 2018 8:05 pm 

    “No, The U.S. Is Not A Net Exporter Of Crude Oil”

    • U.S. crude oil production – 11.7 million BPD
    • Other supply (NGLs, ethanol, processing gain) – 6.9 million BPD
    • U.S. crude oil imports – 7.2 million BPD
    • U.S. crude oil exports – 3.2 million BPD
    • U.S. finished product imports – 1.6 million BPD
    • U.S. finished product exports – 5.8 million BPD
    • U.S. petroleum consumption – 20.5 million BPD

    https://oilprice.com/Energy/Crude-Oil/No-The-US-Is-Not-A-Net-Exporter-Of-Crude-Oil.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+oilpricecom+(Oil+Price.com+Daily+News+Update)

    Do the math. Nuff said.

  35. rockman on Sat, 15th Dec 2018 10:45 am 

    Duncan – “If you produce 11 million barrels a day, and use 19 million, you obviously don’t have a surplus.” Not saying I buy their math completely but you and many others are mist interpreting “consuming 19 million bbls of oil”. US consumers are not consuming the refinery products made from 19 million bbls of oil…it’s closer to 13 million bbls. About 5 to 6 million bbls are being refined and those products used by foreign consumers. As Anony points out the discussion gets confusing when product exports are mixed into the conversation. That oil utilized essentially represents a REEXPORT OF SOME IMPORTED OIL.

    But here’s the kicker: the US economy remains very dependent upon ALL EXPORTED OIL. First, the US economy is very dependent on those product exports. They generate huge revenue sources for US companies, create many thousands of high paying US jobs and also help decrease our trade deficits.

    Second, the huge volume of oil exports to other countries by OPEC et al keeps the price of oil consumed by US citizens lower. IOW if Saudi significantly cut it’s oil export to the EU the price of US refinery products consumed in this country would soar.

    And lets not forget one of the great advantages US consumers have: Canadian oil and dilbit exports are landlocked for the most part. Should Canadian producers ever develop easy export capabilities to Asia our access and price to their production would radically change.

    Whether they realize it or not the financial wellbeing of US petroleum consumers is connected at the hip to the global oil market whether the US is a net oil exporter or not.

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