U.S. Oil Exports Reach Record Highs; That’s Right…Exports

[The Straight Story]

U.S. Oil Exports Reach Record Highs; That’s Right…Exports

Funny how politician after politician keeps talking about the necessity to drill for more oil in the U.S., be it in Alaska or in the Gulf of Mexico or on public lands—considering that America has been breaking records this year for exports of petroleum.

According to the U.S. Department of Energy, American exports of crude oil and refined petroleum products are higher than they’ve ever been. In April of this year, oil companies sold nearly three million barrels overseas—which was double the amount sold four years earlier (April 2007).

Since April 2011, exports have tapered off somewhat, to about 2.6 million barrels a month. But even at this rate, petroleum sales to other countries are higher than at any time recorded from the beginning of 1989 to the end of 2010.

Meanwhile, U.S. and Canadian oil firms are lobbying the Obama administration to approve the construction of the controversial 1,661-mile transcontinental Keystone XL pipeline that would carry tar sands oil from Canada to Texas refineries. This development would mean more export profits for oil companies, as some of the oil sands would be refined for overseas use.

http://www.allgov.com/Controversies/ViewNews/US_Oil_Exports_Reach_Record_Highs__Thats_Right__Exports_110905

[geckosfeet]

1. Hmmm. Drill baby drill. Sell baby sell.

The oil corps know they can get more for their oil in Europe than in the US.

How is that corporate patriotism (AKA fascism) working out for you?

[Cool Logic]

2. "The oil corps know they can get more for their oil in Europe than in the US."

Crude oil is commodity, it trades for the same price everywhere on the planet.

[geckosfeet]

8. Ok. I can accept that basic premise. Then why sell outside the US?

Aside from corporate profits I mean.

Ok. There isn't anything beyond corporate profits. I can accept that basic business tenet as well.

This leads me to the inescapable conclusion, that somehow, somewhere, there is more money to be made selling overseas than domestically.

[no_hypocrisy]

3. The way I understand the system is that we sell our oil to an international pool

and then buy it back at their price.

[OllieLotte]

4. I don't think this is much of a story.

Some of this includes refined products.

[izquierdista]

5. Set aside resources for the local folk?

That doesn't sound very capitalistic. In fact, it's awful close to that "each according to his needs" stuff. Maybe the writer hasn't gotten the memo.....

[FarCenter]

6. Most of the Petroleum We Use Is Imported

The United States consumed 19.1 million barrels per day of petroleum products during 2010, making us the world’s largest petroleum consumer (22% of world total). The United States was also third in crude oil production at 5.5 million barrels per day. But crude oil alone does not constitute all U.S. petroleum supplies.

Altogether, net imports of crude oil and petroleum products (imports minus exports) accounted for 49% of our total petroleum consumption in 2010.

U.S. crude oil imports grew rapidly from mid-20th century until the late 1970s, but fell sharply from 1979 to 1985 because of a fall-off of demand for petroleum products that resulted from economic conditions, conservation, and improved efficiency. After 1985, the upward trend resumed, peaking at 10.1 million barrels per day in 2005, and stood at 9.2 million barrels per day in 2010. Petroleum product imports were 2.6 million barrels per day in 2010. Total exports were 2.3 million barrels per day in 2010, mainly in the form of distillate fuel oil, petroleum coke, and residual fuel oil.

...

The United States Also Exports Oil

Because the United States is the world’s largest oil importer, it may seem surprising that it also exports about 2 million barrels a day of oil, almost all of it in the form of refined petroleum products. Due to various logistical, regulatory, and quality considerations, it turns out that exporting some barrels and replacing them with additional imports is the most economic way to meet the market’s needs. For example, refiners in the U.S. Gulf Coast region frequently find that it makes economic sense to export some of their gasoline to Mexico rather than shipping the product to the U.S. East Coast because lower-cost gasoline imports are available from Europe.

http://www.eia.gov/energyexplained/index.cfm?page=oil_imports

[Swede]

7. And imports, 12 million barrels per day.