LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Stocks Outperform Gold but not Stocks
By: Jordan Roy-Byrne CMT, MFTA

Market Bides Time Ahead of More Fed Twaddle
By: Rick Ackerman, Rick's Picks

Precious Metals Update Video: Gold waiting for FOMC tomorrow
By: Ira Epstein

Asian Metals Market Update: March-19-2019
By: Chintan Karnani, Insignia Consultants

Keynes Was a Vicious Bastard
By: Keith Weiner, Monetary Metals

SWOT Analysis: Goldcorp Chairman Ian Telfer’s $12 Million Retirement
By: Frank Holmes, US Funds

Gold and Silver Are Feeling Frisky
By: Dave Kranzler

Is The Stock Market Finally Topping?
By: Avi Gilburt

Why This Rally Smells Funny
By: Rick Ackerman, Rick's Picks

Technical Scoop: March-17-2019 -- Markets, Precious Metals & More
By: David Chapman

 
Search

GoldSeek Web

 
U.S. ENERGY INDEPENDENCE?? Still Importing Nearly 8 Million Barrels Of Oil Per Day


 -- Published: Sunday, 15 July 2018 | Print  | Disqus 

By Steve St. Angelo

How is the U.S. is becoming “Energy Independent,” if we are still importing almost 8 million barrels per day of oil??  While the Mainstream media and the Whitehouse continue with the energy independent mantra, the U.S. is still highly reliant upon a great deal of foreign oil.  And, why would the U.S. import 8 million barrels of oil per day if its shale oil production has surged over the past decade?

Well, it’s quite simple.  The U.S. Shale Oil Industry is producing way too much light tight oil, with a high API Gravity, for our refineries that are designed for a lower grade.  So, as U.S. shale oil production exploded, the industry was forced to export a great deal more of this light oil overseas.

Here is a chart of the different grades of U.S. crude oil and condensate production:

The figures in the table above are shown in thousand barrels per day.  The U.S. produced 483,000 barrels per day (bd) of heavy oil in April, 3.9 million barrels per day (mbd) of medium oil and 5.5 mbd of light oil and condensate.  Condensate’s API gravity usually is 50° or higher.  The 3,688,000 bd of 40°-45° crude is mostly shale light tight oil produced in the shale oil fields in North Dakota and Texas.

As I mentioned, the United States can’t be energy independent if it must rely upon 8 mbd of foreign oil supplies.  According to the charts from the CrudeOilPeak.info, the United States imported 7.8 mbd of oil over the past 12 months:

You will notice that most of our oil imports come from Canada (Dark Brown).  The reason for the growth in Canadian heavier oil imports (oil sands) is that it is used to blend with our shale light tight oil to make a more medium blend.  Thus, we need the heavier Canadian oil sands to blend with our lighter shale oil.  However, we still produce way too much light oil, so we are forced to export it overseas.

Matt, the author at CrudeOilPeak.inf, does a great job producing oil charts, and here is another below:

This chart shows the increase in U.S. oil exports.  As shale oil production increased significantly in 2017, so did our oil exports.  From the article, US crude oil imports and exports update April 2018 data:

The US had a crude oil export ban in place but Canada was exempted due to the integrated oil supply system. The export ban was lifted in January 2016 because US refiners could not absorb increasing quantities of tight oil (one reason why oil prices dropped).

In many countries extra light US shale oil is being used as a blending component, but not as bulk feedstock. Important volumes of US crude oil exports (which would matter on global oil markets) go only to a few countries.

No matter what clever US energy independence calculations are out there, the fact remains that the US is physically dependent on around 8 mb/d of crude oil imports, 4.3 mb/d out of which come from countries where oil production has already peaked and/or where there are socio- economic or geopolitical problems.  As of April 2018 US net crude imports were about 6 mb/d, far from oil independence.

Unfortunately, very light tight shale oil is not in big demand overseas.  Instead, our shale oil exports are used more as a blending component rather than a bulk feedstock.  So, the more shale oil we produce, the more we will be forced to export.

The United States will never become energy independent even if domestic shale oil production continues to surge higher.  However, I believe shale oil production in the states will likely start to decline within the next 1-3 years.  When the OVER-BLOATED and HIGHLY LEVERAGED stock markets begin to collapse, they will also take down the oil price.  A falling oil price will destroy the already weakened shale oil industry.

The Death of the U.S. Shale Oil Ponzi Scheme is approaching.  If you have not seen my video on the Shale Oil Ponzi, I highly recommend you watch the presentation below:

Lastly, I am still finishing up my next video on the BIG CHANGES IN THE GOLD MINING INDUSTRY.  Please look out for it to be released soon, and if you haven’t subscribed to my youtube channel, you can do so here: SRSrocco Report Youtube Channel.

Check back for new articles and updates at the SRSrocco Report.

 


| Digg This Article
 -- Published: Sunday, 15 July 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.