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
Refineries also are set up to run certain “slates” of crude. As others have mentioned there are different qualities, weights, and solids contents in various crudes. These refineries are designed to operate and run optimally for a given type. As such, their supply chain teams and engineers will bring in the correct types to be able to operate at peak efficiency and ensure the most margin on their products.
So it makes sense in this case to import middle eastern crudes, that tend to be heavier, into the gulf around Houston, Louisiana and to export much of the lighter/sweeter Permian Crude types to facilities that are more designed to handle that.
Latest Answers