USA: Net oil exporter

Interesting factoid on Bloomberg News (the news source for the tragically unhip):

The U.S. will export more oil in 2011 than it imports for the first times since 1949. I know nothing about the oil industry but I assume we export one kind of oil and import another. Likewise, I have no idea if this is good, bad, better or indifferent but I found it an interesting factoid.

Replies

  • one question ... is this simply crude or all petroleum products i.e. diesel

    btw US consumption of gasoline has been 'flat' for months so I am ready for the supply and demand thing to kick in at the pump [/holding breath]

    sure glad we continue to give them billions in subsidies though cause it looks like they are ready to go belly up
  • ouzelproouzelpro Senior Member Posts: 5,361 Senior Member
  • All I know on the subject is the headline.
  • no I get that was just askin'

    it's a part of the equation that would be nice to know

    back when gas was $5 a gallon and the Faux News talking heads were screaming it was the enviro's fault for not allowing drilling and new refineries the reality is the cost of gas in a large part was up due to the fact that our refineries had shifted production output to make diesel for export to Europe and take advantage of a nice tax loophole they'd been given

    in this case the oil is coming from somewhere but I doubt domestically since our domestic output is easily outpaced by our daily consumption likely these exports are coming in a large part from Canadian sources
  • ouzelproouzelpro Senior Member Posts: 5,361 Senior Member
    Incomplete reporting (kicking dirt).

    Bakken field effect on futures and supply?
  • Steven, what little I know about the oil biddnesss is this. Light sweet crude is easier to refine and is what we prefer. The less light crude (ie darker, messier to refine gets turned into diesel.) The Bakken fields and oil sands crude is not light sweet crude. In Europe as you probably know from being the traveler uses more diesel hence more gets shipped to Europe and Asia.

    All oil futures are traded on the world market and with the Saudi Cartel they can mess with the pricing per barrel. When oil sands started to kick in heavy a few years ago the Cartel increased production dropping the world price and put the oil sands back on hold.

    At least that's the way I understand it. Anyone else please feel free to edumacate me.
  • NZ IndicatorNZ Indicator Senior Member Posts: 10,496 Senior Member
    greenman wrote: »
    In Europe as you probably know from being the traveler uses more diesel hence more gets shipped to Europe and Asia.

    This is because the U.S. has more stringent air pollution regulations on diesel vs. Europe. It also is taxed at higher rate in the U.S. (because of commercial trucks) and the U.S. doesn't carry the refining capacity for it like Europe does.

    Which is why there are more diesel cars and trucks over there.
  • HextallHextall Senior Member Posts: 9,520 Senior Member
    It's threads like these that make me wish Tippy was still alive.
  • swizzswizz Senior Member Posts: 2,567 Senior Member
    Hextall wrote: »
    It's threads like these that make me wish Tippy was still alive.

    Tippy's dead??
    All of your Trout are belong to me.
  • Suicide pact with Cappy Duane?
  • joekrz wrote: »
    the U.S. doesn't carry the refining capacity for it like Europe does.

    this is odd considering the European market seems so dependent upon our output of diesel and our exports to their markets
  • creekguycreekguy Senior Member Posts: 4,000 Senior Member
    greenman wrote: »
    Steven, what little I know about the oil biddnesss is this. Light sweet crude is easier to refine and is what we prefer. The less light crude (ie darker, messier to refine gets turned into diesel.) The Bakken fields and oil sands crude is not light sweet crude. In Europe as you probably know from being the traveler uses more diesel hence more gets shipped to Europe and Asia.

    All oil futures are traded on the world market and with the Saudi Cartel they can mess with the pricing per barrel. When oil sands started to kick in heavy a few years ago the Cartel increased production dropping the world price and put the oil sands back on hold.


    At least that's the way I understand it. Anyone else please feel free to edumacate me.

    Some good info there: Petroleum varies greatly in character, such as viscosity, (size of the HC molecules), and sulfur (H2S) content. Most refineries can handle only a certain kind of oil, so oil is not as fungible as some would think. Venezuelan oil is very viscous and heavy and is mainly refined in specialized gulf coast refineries (and is relatively expensive to refine, making Hugo vulnerable to drops in price). Alaskan oil (a light, low viscosity oil) can be shipped less expensively to Asia than to the Gulf or East coast. California oil is very viscous and refineries there are designed for that. So I think the export-import ratio is about the cheapest way to get it to market.
    How i know this stuff? I worked 6 years for Arco as an oil exploration geologist, and consulted in the industry for another 5 years. 30 year member, American Association of Petroleum Geologists.
    Tippy? I bet he's in Abu Dhabi or Nigeria or Brunei now. Big company guys move around a lot.
  • NZ IndicatorNZ Indicator Senior Member Posts: 10,496 Senior Member
    monkeydoes wrote: »
    this is odd considering the European market seems so dependent upon our output of diesel and our exports to their markets

    I believe it to be dependent on our output of oil which is then made into diesel. The U.S. isn't set up like Europe is to do this.

    Pages 5 and 7...

    http://www1.eere.energy.gov/vehiclesandfuels/pdfs/deer_2007/session7/deer07_williams.pdf
  • then why were we importing oil for the express purpose of exporting it as diesel back when gas was $5 a gallon at the pump
  • by the way I looked at your link and I think the disparity comes from a comparison of percentage outputs based on design and not neccessarily volume ... point still remains a significant amount of refining capacity for gasoline was taken off line in order to supply demand for diesel to European markets and a siginicant volume was refined from foreign imports of crude

    note we use approx 40% more oil per day than the EU
  • TimDTimD Senior Member Posts: 906 Senior Member
    Steven wrote: »
    Interesting factoid on Bloomberg News (the news source for the tragically unhip):

    The U.S. will export more oil in 2011 than it imports for the first times since 1949. I know nothing about the oil industry but I assume we export one kind of oil and import another. Likewise, I have no idea if this is good, bad, better or indifferent but I found it an interesting factoid.

    Here is a snip from WSJ online:
    BY LIAM PLEVEN AND RUSSELL GOLD

    U.S. exports of gasoline, diesel and other oil-based fuels are soaring, putting the nation on track to be a net exporter of petroleum products in 2011 for the first time in 62 years.

    A combination of booming demand from emerging markets and faltering domestic activity means the U.S. is exporting more fuel than it imports, upending the historical norm.

    According to data released by the U.S. Energy Information Administration on Tuesday, the U.S. sent abroad 753.4 million barrels of everything from gasoline to jet fuel in the first nine months of this year, while it imported 689.4 million barrels.

    This shows net annual imports: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTTNTUS2&f=4

    The trend has been down since 2008.

    It will be good for America's balance of payments.

    Tim
  • when will Iraq begin paying us back with their petro dollars?

    ... the clock is ticking and well past owing us 11 years of free oil and counting ... just sayin'
  • TomTom Senior Member Posts: 253 Senior Member
    Weve been an exporter of diesel for a while. Monkeys point about unleaded refining going offline for diesel is true, but only on the east coast. Weve now become a net exporter of all finished petro products, something we havent accomplished in 20yrs. This is generally due to a decline in domestic demand and continued strong demand for diesel in europe, the americas, and asia. Refineries have also produced more fuel this year than in years past. As Tim said, its one new bright spot on our current accounts balance, good for us.

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