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

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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

43 Answers

Anonymous 0 Comments

There is no 1 single oil.

Oil has many different grades and types. The light oil the US gets from fracking in Texas gas is light and produce a high percentage of gasoline and diesel, but that’s pretty much all it’s good for.

Heavy oil has produces less gasoline and diesel but it’s other components can be used to make asphalt, plastics and other petroleum products. We get this heavy oil from many different countries but mostly Canada.

Secondly, moving oil across the land is more expensive than oversea and moving oil from Texas to west and east coast had to be by train due to Jones law that forbid foreign ships from domestic trade routes (and the US doesnt have rnough domestic tanker ships). O&G Businesses end up selling their oil overseas and refineries also buy them from other foreign countries. We export and import oil simultaneously.

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