“Why does the US import so much oil when they are the world’s largest exporter of it?”

Question

I keep hearing over and over that the US imports all of its gasoline and raw petroleum that it used, however when you look at the numbers its the greatest exporter of oil ever. Wouldn’t it make more sense for the US to just take some that they produce and keep it to sell to its own consumers.

In: Economics

Answer 1

Tight Oil (shale oil is a recent technology). This typically produces light API grades of oil. Many refiners in the US are set up to refine heavier API grades. Before fracking was ubiquitous refiners thought only heavy grades would be a long term safe supply. They set up to refine heavier grades of crude like Canadian Western, Mexican heavy and Venezuelan crude. The imported oil has the specifications the refineries set up to work with as feed stock. Hence why you even hear of trading light oil for heavy oil.