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By Robert Rapier on Jun 23, 2014 with 6 responses

Where The US Got Its Oil in 2013

How Much Oil Do We Import?

As events in Iraq continue to unfold, we have been getting quite a few queries on just how much oil the US imports from Iraq. In my previous post – The Top 10 Oil Producers in 2013 — I showed that even though the US is a major oil producer, we are an even greater oil consumer. So we import millions of barrels a day of oil from over 40 countries — one of which is in fact Iraq.

The Energy Information Administration (EIA) tracks US oil imports and finished product exports, and I have tabulated our Top 10 sources of crude oil imports from 2013. Overall, the US imported 7.7 million barrels per day (bpd) of crude oil in 2013, a 2 million bpd decline since 2008. We imported another 2.1 million bpd of finished products like diesel, gasoline, and jet fuel, but we also exported 3.6 million bpd of petroleum and petroleum products (mostly as finished products).

Where Does Our Imported Oil Come From?

Of the 7.7 million bpd of crude oil imports, 3.5 million bpd (45 percent of the total) came from OPEC countries. Saudi Arabia was our largest OPEC supplier at 1.3 million bpd (17 percent of the crude import total). But our biggest supplier of crude continues to be Canada. The 2.6 million bpd of crude we got from Canada in 2013 represents a 66 percent increase in the past 10 years and made up a third of US crude oil imports in 2013.

US Crude Imports in 2013

Top 10 Sources of US Crude Oil Imports in 2013 (million barrels per day). 

While Canada has become a much more important source of US crude oil, imports from Saudi Arabia, Mexico, Venezuela, Iraq, Nigeria, and Angola have all seen double-digit declines over the past decade. These import declines are a result of a nearly 2 million bpd drop in our import demand, plus Canada’s increasing share of our business.

Why Do Events in Iraq Affect US Oil Prices?

The question often arises, given Iraq’s relatively small contribution to the US oil supply picture, why events there should impact prices here. As I explained last week in The Oil Markets as a Thanksgiving Turkey, Iraq’s oil production has risen 8 years in a row, and makes up 3.7 percent of the world’s oil supply. We imported 340,000 bpd of oil from Iraq in 2013, less than half of the all-time high of 795,000 bpd we imported from Iraq in 2001.

But over the past eight years, while Iraqi oil production was increasing by 1.3 million bpd, global oil consumption has increased by 6.9 million bpd. The increases in production in Iraq, along with the even greater production gains in the US, have struggled to keep up with rising demand. This has meant little spare capacity in the system, and with a globally traded commodity like crude oil, potential disruptions in supply make traders nervous and they bid prices higher.

Thus, even if we imported no oil at all from Iraq, oil that might be removed from the global supply tends to have a disproportionate impact on the price with supply and demand in such tight balance. There is no better illustration of this than Canada, a net exporter of crude oil. They are seeing gasoline prices hit record highs, showing that one doesn’t have to be a net importer of oil to feel the pain of higher oil prices.

Link to Original Article: Where The US Got Its Oil in 2013

You can find Robert Rapier on TwitterLinkedIn, or Facebook.

  1. By Tom G. on June 23, 2014 at 6:11 pm

    Excellent follow up Robert – thank you. Its not often we think about how consumption in one country can lead a higher price in a different country. A really good demonstration of the power of a commodity like oil.

  2. By Forrest on June 24, 2014 at 7:52 am

    The EIA trend lines for U.S. oil production very heartening. Since ’08 were enjoying annual increase of tight oil production the likes the country never experienced. This production compounded by friendly neighbor with oil sand production doubling by 2030. All of Canadian crude, could be pumped and entrusted to U.S. refineries, giving the U.S. a piece of revenue. U.S. steadily increasing oil production a blessing as the country is adrift in deficit spending. If we utilize our natural resources wisely we have an opportunity to pay down our debt and hand country off in better shape to future generations. If we act foolishly, we could enslave the youth to debt. Were given a gift at a perfect time in history. India and China developing economies will need and pay premium prices for all oil production. We can stabilize and handicap our economy per steady petrol supply and hopefully export product. The U.S. objective per present production capability should be to energize the oil capability of efficient petrol production with pipelines, regulations, investments, infrastructure, etc. Hopefully, this could be managed to prevent oversupply conditions (highly unlikely). We need to keep market strong and recoup maximum benefit of new found riches. Maybe time to all invest in oil stock. Let average American share benefit and don’t forget to boost tax load. Environmentalist need to change strategy and avoid those urging actions that financially hurt the country. We need common sense management and put our thinking caps on. Less emotional drama and more intelligent compromise. That would require less political opportunism and name calling. We should continue the R&D efforts for promising energy supplies and continue the build out of same. We need to invest in long term solutions to countries ever need for energy. This can be accomplished per best cost return and learning curve installations. We should not attempt bleeding edge integrations per fever pitch environmentalism catastrophe predictions. We needn’t throw our countries hard fought personal freedoms under the bus to accomplish the objective. We may need little government (taxpayer and deficit spending) help other than general oversight. Most help would be for the federal complex to back out of the decision making process and simplify/decrease the compliance costs, IOWs empower the private sector to act and invent.

    • By Forrest on June 24, 2014 at 8:25 am

      I’m also bullish on retail roof top solar. However, wind energy enthusiasm should be tempered a bit until technology can make it more useful and cost effective. Clean coal appears to be a good resource and one that may be rated most powerful within international pollution problems. Biofuel and biomass has ability to make a big impact upon generation of low cost energy and may become a CO2 negative rating per cogeneration of starch, sugar, waste, and cellulosic feed stocks. Nuclear future always strong and will be ever more important in future. Nuclear reactors with high temperature and power generation may become hydrogen super producers. Natural gas production should be utilized not upon electrical generation as we have better uses for the fuel. I could think of nothing better for economy and environment than to shift more NG to transportation and CHP needs. We should also, increase the utilization of biomass for space heating needs and continue steady pace of biofuels production for transportation. Hydro, geothermal, and biogas should be pushed to capture all economic viable production sites.

  3. By John Borowski on June 24, 2014 at 7:07 pm

    So: we get oil from Nigeria who sponsors terrorism. We get oil from Saudi Arabia………how many highjackers on 9/11 were from Saudi Arabia? 14? Burn more oil? Who pays for the damage to the economy from smog? Global warming? (Flooding, loss of crops). Time to get off oil and coal. Now.

    • By Jacob on July 28, 2014 at 5:09 pm

      Yeah because high jackers were from Saudi Arabia the country is automatically bad? I’m American and I lived there for 10 years, honestly best years of my life. The have extremely strict anti-terrorism laws, with punishments that revolve around beheading. Oh and all those hijackers that were from saudi arabia? They were all recruited and trained in Pakistan. Don’t blame a whole country because some of there citizens have done.

    • By ManicDepression on August 8, 2014 at 1:40 pm

      Hate to break the news to you, there is no global warming, it’s a hoax, bet you hadn’t heard. Btw I’ll say yeah lets get off oil when we can fly a 747 on batteries, get back to me when that happens.

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