U.S. Nears Milestone: Net Fuel Exporter

[Dover]

Source: WSJ

U.S. exports of gasoline, diesel and other oil-based fuels are soaring, putting the nation on track to be a net exporter of petroleum products in 2011 for the first time in 62 years.

A combination of booming demand from emerging markets and faltering domestic activity means the U.S. is exporting more fuel than it imports, upending the historical norm.

According to data released by the U.S. Energy Information Administration on Tuesday, the U.S. sent abroad 753.4 million barrels of everything from gasoline to jet fuel in the first nine months of this year, while it imported 689.4 million barrels.

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Read more: http://online.wsj.com/article/SB10001424052970203441704577068670488306242.html?mod=WSJ_article_forsub

[eppur_se_muova]

1. Net exporter of ***refined*** petroleum products --

I'll bet we're still importing crude oil, but we're keeping our refineries busy.

[JCMach1]

6. Lots of the developing world does not have enough refining capacity

[DCBob]

8. Yes, we still import a great deal of oil then export the refined products.

We are still the worlds largest consumer of oil and oil products by far. We also have the largest refinery capacity.

[Yo_Mama]

12. Yes, of course we are, but this is a very significant change

Crude imports are falling somewhat over the long-term average, but exports of petroleum products are rising very sharply:




This is because internal consumption is falling:

[Sherman A1]

2. And yet, the price at the pump is what?

There may perhaps be some good news in this piece, however I find it hard to find.

[Ikonoklast]

3. The good news is that refiners are getting record profits.

The bad news is, you and every other American is paying higher food prices because instead of selling diesel in this country at market prices, they are selling it overseas for more money; all food depends on diesel, from input, harvest, shipment to processor, then to wholesaler and retailer.

Guess what the Canadian Tar Sands will be refined for, come on, guess?

If you said, "Refined diesel for export!" you win a cookie.

[dipsydoodle]

9. Unasociated item

The world price of oil is the world price of oil. The US being a net exporter is incidental.

[Yo_Mama]

14. Trade balance

The less we consume and the more we export, the more our trade imbalance decreases. Over time, this is very important for our economic health and our ability to run deficits.

We're not near where we need to be, but at least we're improving. Raising internal production in relation to internal consumption will sustain our ability to consume, thus raising relative living standards over the long run.

[Fokker Trip]

4. This is likely Tar Sands oil and will certainly be so if the pipeline goes through. nt

[pampango]

5. Better to refine it here and export the finished product than to export the raw natural resource.

Japan and Germany have done quite well importing raw materials and exporting finished products.

[Spider Jerusalem]

7. Net importer of crude oil.

The only reason the US is anywhere near to being a net exporter of refined fuel products is because Pemex et al don't have the refinery capacity to process their Gulf Coast crude and Canada doesn't have the refinery capacity to process Albertan tar sands crude, so that comes to the US via pipeline or tanker and gets refined in the States for re-export.

[Dover]

10. Here's what is in the Huffington Post that explains a bit more >>>>>>>>>>>

earlier this year.


U.S. Becomes Net Exporter Of Fuel For First Time In Nearly 20 Years

While some Americans cut back on driving as gas prices soar, the U.S. has become a net exporter of fuel for the first time in nearly 20 years.

According to data from the Energy Department, starting last November -- with the exception of the month of January -- the U.S. began exporting more petroleum products than it imported.

In February, the U.S. exported 54,000 more barrels of petroleum products each day than it purchased abroad, with diesel and finished petrol leading the increase. According to the American Petroleum Institute, an industry group, U.S. refined product exports rose in the first quarter of 2011 to 2.49 million barrels per day, a 24.4 percent year-over-year increase, the Financial Times reports.

In the first quarter of 2011, imports dropped to 2.26 million barrels a day, a 14.4 percent year-over-year decline, according to the FT.

Analysts attribute the increase in exports to a combination of overlapping factors: unrest in the Middle East leading to higher oil prices, a weak U.S. dollar and increased spending power abroad, particularly in Latin America.

... cont'd

http://www.huffingtonpost.com/2011/05/03/us-becomes-net-exporter-o_n_857085.html

[melm00se]

11. weak dollar equals

cheaper US exports overseas.

that simple.

US exports are increasing as the dollar weakens

Although imports cost more

[Yo_Mama]

13. I think this is partly due to high Brent prices

The price differential between WTI and Brent has been high, and US refineries had spare capacity, so they have the ability to refine and export at cheaper prices than refineries in many other areas.

Refineries have to be set up to process different types of oil, and it is often expensive or even impossible to switch from processing one type to to another type.