Friday, November 25, 2011

Net Oil Imports Only 45.6% of U.S. Consumption, Dependence on Foreign Oil Lowest Since 1995

From Mort Zuckerman's editorial in today's WSJ:

"The good news is that the United States is at the center of a global energy revolution. Our development of innovative shale-gas technology offers the prospect of a huge bonanza of natural gas (and some oil as well). It's the most positive event in the country's energy outlook in 50 years. Let's celebrate the achievement before looking at what needs to be done to bring it to fruition.

This kind of seismic shift in the energy landscape is rare. It could bring us back to the time when the U.S. and its neighbors in the hemisphere were self-sufficient and even a major world source of energy. Energy companies have become exporters, as the U.S. has surpassed Russia as the world's leading gas producer.

America's soaring natural-gas production has already helped cut our share of oil consumption met by imports to 47% last year from 60% in 2005, according to the Energy Information Administration. The shale-gas revolution, with proper safety practices, can be expected to continue this trend while addressing three longstanding concerns of the energy business: energy scarcity, energy security, and environmental risks. In a word, we have a chance to remake our energy future."

MP: Actually, based on the most recent EIA data through October 2011, net oil imports now account for only 45.6% of U.S. oil consumption, the lowest annual average in 16 years, since the 44.5% share in 1995 (see chart above). 

11 Comments:

At 11/25/2011 7:20 PM, Blogger AIG said...

Can you explain to me why this is necessarily a "desirable" outcome? I don't know the numbers, but I'd assume a large portion of this increase in domestic "oil" is due to ethanol, which now accounts for about as much oil as is imported from Saudi Arabia.

If the driver of this increase in domestic production is government subsidizing of ethanol, it may not be very "desirable".

 
At 11/25/2011 7:24 PM, OpenID voxrationalis said...

"Fact is that an enormous amount of the import share is explained by the level of U.S. consumption.  So as petroleum consumption has declined 9% since 2005, due to higher prices and a weaker economy, so too has our need to import petroleum to meet our needs."

link

 
At 11/25/2011 9:23 PM, Blogger Hydra said...

It is an international commodity. It will go where people are willing to pay for it.

 
At 11/25/2011 10:34 PM, Blogger VangelV said...

MP: Actually, based on the most recent EIA data through October 2011, net oil imports now account for only 45.6% of U.S. oil consumption, the lowest annual average in 16 years, since the 44.5% share in 1995 (see chart above).

The data shows a decline of 1.7 mbpd in demand since 2005. Why is the economic contraction good news again? And let us note that the Products Supplied category includes heavily subsidized biofuels. Since when it the use of above market cost products better than importing?

 
At 11/26/2011 8:32 AM, Blogger juandos said...

"but I'd assume a large portion of this increase in domestic "oil" is due to ethanol..."...

Hey aig what made you think of 'ethanol' was somehow part of this story?

 
At 11/26/2011 9:37 AM, Blogger VangelV said...

Hey aig what made you think of 'ethanol' was somehow part of this story?

Because the accounting is not very clear and the EIA has included biofuels in the Products Supplied category in the past.

 
At 11/26/2011 2:56 PM, Blogger MaggotAtBroad&Wall said...

I cross my fingers that the eco-fascists don't find a snail darter or two living near the shale deposits.

 
At 11/26/2011 3:57 PM, Blogger juandos said...

"...EIA has included biofuels in the Products Supplied category in the past"...

Ahhh, thanks vangeIV...

 
At 11/28/2011 1:40 PM, Blogger Richard Rider, Chair, San Diego Tax Fighters said...

What I find interesting about this recent trend is that it is occurring in SPITE of the obstructionist federal energy policies opposing drilling in America (or anywhere NEAR America). We can only speculate as to what the percentage would be if we had pursued a more reasonable drilling policy.

And too bad we hate Canadian oil and gas -- they sure would like to pipe it down to us (for a price, of course).

 
At 11/28/2011 5:25 PM, Blogger VangelV said...

What I find interesting about this recent trend is that it is occurring in SPITE of the obstructionist federal energy policies opposing drilling in America (or anywhere NEAR America). We can only speculate as to what the percentage would be if we had pursued a more reasonable drilling policy.

Actually, had a more reasonable drilling policy been followed the shale bubble would already have burst. The industry can't make money in shale gas and it is very doubtful that it could make money in shale oil.

And too bad we hate Canadian oil and gas -- they sure would like to pipe it down to us (for a price, of course).

Not to worry. The Canadians will have to look elsewhere for their energy.

 
At 4/16/2012 11:35 AM, Blogger MicMouse said...

@AIG First this is not bc of ethanol, which i agree is the worst piece of legislation in our time. This is because of a combination of three things (not just one as this site says!!!) better technology, more oil from neighbors (ie canadian sand oil) and improved american efficiency and waste reduction. This is a very desirable outcome, our country spends over 350 billion every year just on oil and our trade deficit (that accumulating number everyones freaking out about) was caped at around 430 billion this year. So if you are able to fully become energy independent now, our deficit would be hugely cut and our nation could invest in other things instead of possible revolutionary armies that then bite us in the ass.

 

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