The United States as a Net Importer and Exporter of Oil
With complex supply and demand dynamics, the United States (US) has experienced shifts in its status as both a net importer and exporter of oil. This article explores the current trends and patterns in US oil trade, backed by data from the US Energy Information Administration (EIA).
US Oil Trade Dynamics
The US produces approximately 12 million barrels per day (b/d) of crude oil and has refinery capacity for about 18 million b/d. To maximize the utilization of refineries, the country needs to import around 6 million barrels per day of crude oil. Meanwhile, US consumers consume about 12-13 million barrels per day of petroleum products, including gasoline, diesel, jet fuel, propane, and butane. This creates a situation where the US is a net crude oil importer but a net petroleum exporter.
Imports and Exports of Crude and Refined Products
According to EIA data, during 2021, the US imported an average of 8.47 million barrels per day (b/d) and exported 8.64 million b/d, resulting in a net export of 160,000 barrels per day. This trend highlights the intricate nature of the US oil trade, where it imports crude oil and exports value-added refined products.
The data also shows that in 2021, the US produced and exported approximately 2.98 million b/d of crude oil, accounting for about 35% of total petroleum exports. The US imports a substantial volume of heavy crude oil and then refines it to produce lighter petroleum products for export. Additionally, there are significant exports of fracked light crude oil, primarily from the Texas/Northwest Mexico Permian region.
Global Trade Dynamics of US Oil
The US is the world's largest producer of oil and gas under President Biden, yet some oil products are still imported while others are exported. This illustrates the diverse nature of the global oil market, where the industry goes to where it can get the right product at the best price – a principle known as capitalism.
Country-Specific Imports and Exports
The top five source countries for the US gross petroleum imports in 2021 were Canada, Mexico, Russia, Saudi Arabia, and Colombia. On the export side, the US exported petroleum to 176 nations and 4 US territories. Crude oil comprised around 6.11 million b/d (72% of imports) in 2021, while non-raw petroleum oil represented about 28% of total US gross oil imports.
Conclusion: The Ever-Shifting Balance
The US's role as a net crude oil importer and net petroleum exporter underscores the complexity of global oil trade. Despite significant crude imports, the US refines and exports refined petroleum products, making it a net exporter of petroleum. This dynamic reflects the country's sophisticated refining capacity and strategic positioning in the global oil market.