“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

Because the oil isn’t where it needs to be.

Pipeline infrastructure construction has basically been frozen since Bush left office, which means that to get Oil from Texas to California or New England you have to export it internationally, and then re-import it to regional ports.

That’s why gasoline costs $2.83 in Texas and $4.57 in California.

New England has some aging pipeline infrastructure but it’s insufficient for modern demand. That’s why Heating Oil regionally troughs down to about $2.50 a gallon in summer and peaks at $4-5 in Winter.