Posts tagged “oil imports”
The SPR Grew Without Buying A Barrel
Although mainly focused on the oil market’s current jitters over Syria, Liam Denning’s Wednesday “Heard on the Street” column in the Wall St. Journal neatly highlights the extraordinary degree to which resurgent US oil production and weaker US demand have boosted the effectiveness of US oil inventories, including the US Strategic Petroleum Reserve (SPR). Without adding a drop — the SPR actually shrank a bit in 2011 — the reserve’s potential to replace daily imports in a crisis has soared as those imports have declined.
In the near term this could prove extremely helpful should expected US-led reprisals against the Syrian government result in a regional disruption of oil flows. Longer term, it serves as a further reminder that the existing SPR was designed for another era and is overdue for a major rethink.
A new report released this week by fuel giant Exxon says the energy production revival in the United States will continue into the far future, confirming the U.S. Energy Information Administration’s (EIA) prediction that the country will become a new exporter of energy by 2025.
The annual long-term energy report outlines Exxon’s view of the surging American energy sector, taking into account new production in both the U.S. and Canada, along with increased energy efficiency and expanded distribution networks, in determining the country’s energetic future, with the report also noting that generally flat demand around the developed world is expected over the next 10-15 years. (Read More: U.S. Energy Production to Hit Record Highs)
Even as reports are being released that suggest that the United States will slowly increase its energy output, the American government itself has underscored that fact with its own report detailing energy-related forecasts through 2040.
The report, issued by the U.S. Energy Information Administration (EIA), draws many conclusions, perhaps most important among them the fact that, while American energy imports accounted for 19 percent of its population’s use in 2011, that same number will drop to only 9 percent in 2040 as the country positions itself as a world energy powerhouse. (Read More: How Much Oil Does the World Produce?)
Increased Domestic Oil & Gas Production, Declining Demand and Shrinking Imports
The American energy revolution is starting to come into focus. Technological breakthroughs in shale gas and tight oil production are poised to make the United States — not Saudi Arabia — the world’s largest producer of crude oil as early as the end of the decade, according to the latest World Energy Outlook published by the International Energy Agency (IEA). The IEA’s analysis found that the United States could even be a net exporter of oil by 2035, a position the United States has not been in since the 1940s, when it had one of the world’s few developed oil industries.
At the same time, U.S. demand for crude oil is in decline and its crude oil imports are shrinking. Higher fuel efficiency standards in U.S. vehicles have contributed largely to depressed demand, with U.S. oil imports falling from 56 percent of total consumption to 46 percent between 2008 and the end of 2011, according to the U.S. Energy Information Agency. By 2035, the United States could be importing less than 2 million barrels a day, down from more than 8 million barrels today, according to the IEA. (Read More: Top 15 Sources for U.S. Crude Oil Imports in 2011)
A new report from the International Energy Agency (IEA), a group made up of 28 nations, says that the United States will surpass fossil fuel giants Russia and Saudi Arabia as the world’s largest oil producer by the year 2017.
The United States is closer than many think to true energy self-sufficiency, says the annual long-term report, contrasting sharply with previous IEA numbers that suggested that Saudi Arabia would remain the world’s top oil producer until at least 2035. (Read more: Hofmeister: Surging Demand and Flat Production Equals High Oil Prices)
America’s relationship with Middle East energy resources is changing. Technological breakthroughs in hydraulic fracturing (or “fracking”), renewed drilling in ultra-deep waters in the Gulf of Mexico and, soon, drilling in the Arctic Circle are re-energizing U.S. domestic petroleum production and shrinking the demand for foreign petroleum imports. Meanwhile, oil and natural gas production in the Americas — from Canada in the North, to Brazil and Colombia in the South — are beginning to displace U.S. reliance on Middle East oil. These emerging energy trends will affect America’s relationship with the Middle East in important ways. But do not expect a fundamental shift in U.S. foreign policy in the region any time soon.
The Carter Doctrine and U.S. Energy Interests in the Middle East
The United States has had historical concerns about assured access to Middle East petroleum resources that have shaped U.S. involvement in the region. President Jimmy Carter famously declared in his 1980 State of the Union address that the United States reserved the right to use force to protect the flow of petroleum from the Middle East to the United States: “An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force.”
Although U.S. interests in the Middle East have become more complex since the Carter administration – to include concerns about violent extremism, human rights abuse and nuclear proliferation – it has become almost axiomatic to say that U.S. involvement in the Middle East has been tied solely to concerns about securing access to the region’s petroleum resources. Whether or not one buys that, the perception that U.S. interests in the Middle East are tied solely to concerns about energy supplies raises some questions about whether the United States will lose interest in the Middle East as it becomes less reliant on energy imports from the region.
The Energy Information Administration (EIA) recently published an article on 2011 U.S. crude oil imports. I thought it might be interesting to take a look at where the U.S. currently obtains its oil, and how that has changed over the past decade. The EIA story is: Nearly 69% of U.S. crude oil imports originated from five countries in 2011. I downloaded their data sources for 2011 import data, and then also went into the archives and pulled up 2001 import data to create the following table:
Foreign Oil Imports at Lowest Level Since Before Y2K
U.S. crude oil imports have fallen to their lowest level since 1999, according to data provided by the U.S. Energy Information Administration (EIA), an arm of the U.S. Department Of Energy (DOE).
Crude oil imports for 2011 averaged 8.9 million barrels per day (bbl/d), falling below the 9 million bbl/d mark for the first time since 1999, and down 12 percent since hitting a peak of 10.1 million bbl/d in 2005.
Twisting Facts to Support an Agenda
Thomas L. Friedman, a New York Times Op-Ed Columnist, frequently writes on the topic of energy and the environment. One persistent habit he has is to omit certain important facts from a story — facts so important that they would greatly undermine the point he is trying to make. His latest column provides a perfect example:
His premise is that Taiwan is a model for other countries to follow, because they have no natural resources, and yet have managed to be very successful by investing in their people:
Because rather than digging in the ground and mining whatever comes up, Taiwan has mined its 23 million people, their talent, energy and intelligence — men and women. I always tell my friends in Taiwan: “You’re the luckiest people in the world. How did you get so lucky? You have no oil, no iron ore, no forests, no diamonds, no gold, just a few small deposits of coal and natural gas — and because of that you developed the habits and culture of honing your people’s skills, which turns out to be the most valuable and only truly renewable resource in the world today.
Count me among those who strongly believe in educated citizens. Unfortunately, Friedman’s essay does not advance that cause, but rather misleads by omitting some very important facts. The thrust of his argument is that Taiwan did not need natural resources to become so successful. Unfortunately, what Friedman omits is that Taiwan IS heavily dependent upon natural resources, they just get them from other countries.
In response to Republican claims that the Obama administration is not working to lower gasoline prices, U.S. Department of Energy (DOE) Secretary Steven Chu said that the DOE is on track to lower gasoline prices through some indirect methods, including promotion of alternatives such as biofuels and electric vehicles. Speaking at a White House hearing on the DOE’s budget, Chu said his department is making investments in technologies to improve automobile gas mileage, expand battery life for electric vehicles and develop biofuels to reduce U.S. oil imports. “We very much want to not only slow the price, but reverse the rising cost of gasoline,” Chu said. “We definitely feel the pain that every American and every business feels when the… Continue»