• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 8 minutes What Can Bring Oil Down to $20?
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 3 hours Alberta govt to construct another WCS processing refinery
  • 1 hour Let's Just Block the Sun, Shall We?
  • 4 hours Venezuela continues to sink in misery
  • 2 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 20 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 days OPEC Cuts Deep to Save Cartel
  • 23 hours Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 2 days $867 billion farm bill passed
  • 15 hours Regular Gas dropped to $2.21 per gallon today
  • 2 days Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 2 days WTO So Set Up Panels To Rule On U.S. Tariff Disputes
  • 2 days IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 2 days Global Economy-Bad Days Are coming
Alt Text

Is This The Next Disaster For Canadian Drillers?

The Canadian oil industry can’t…

Alt Text

Oil Prices Tank Despite Large Crude Draw

Oil prices fell on Thursday…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Trending Discussions

U.S. Taking on More Saudi Oil despite Shale Glut

The U.S. Energy Department said imports from OPEC increased year-on-year, with Saudi Arabia accounting for the bulk of additional oil. While oil production from the United States has increased, the data show the global market is still interconnected.

The U.S. Energy Information Administration reported the amount of petroleum imported from members of the Organization of Petroleum Exporting Countries was 3.57 million barrels per day in December, the last full month for which data are available from EIA.  

While only 0.5 percent higher year-on-year, the increase suggests the global energy market is still interconnected despite the success of shale. Imports from Venezuela, the No. 2 OPEC exporter to the United States, declined 22 percent from December 2012 to 846,000 bpd. Petroleum imports from Saudi Arabia in December, however, were 1.5 million bpd, a 47 percent increase year-on-year. 

Related Article: Soros Promotes Oil Sales to Punish Putin

For non-OPEC members, the United States imported about 1 million bpd from Mexico in December, relatively static year-on-year. Imports from Canada, however, rose to 3.3 million bpd, a 5.4 percent increase from December 2012.

U.S. Sen. John Hoeven, R-N.D., said last week energy security concerns in Eastern Europe should serve as a reminder of the need to encourage more production at home. Russia's control over natural gas transit networks in Ukraine illustrates the importance of development oil and gas resources in North American for the sake of energy security. More production, he said, "is central to economic and national security."

North Dakota, the No. 2 oil state in the country, produced 933,128 bpd in January and most of that came from the lucrative Bakken shale formation. North Dakota oil production is expected to top the 1 million bpd this year. State data show an all-time record of 976,453 bpd in November.

Related Article: A U.S.-Saudi Move to Lower Oil Prices?

The U.S. Energy Information Administration said in its short-term market report a rough winter has curbed domestic oil production. A colder-than-normal winter in the United States meant higher withdrawals of energy products used for heating. What EIA described as "harsh winter conditions," meanwhile, meant well completion in northern states like North Dakota was down. This in turn caused the administration to revise downward the estimates of U.S. crude oil production.

President Obama met last week in Riyadh with Saudi officials to reassure one of Washington's more reliable regional allies the bilateral relationship was still important in the era of U.S. oil dominance.  Energy independence, however, is the prevailing trend in the U.S. oil market and East Coast refineries that normally rely on foreign crude are sourcing more Bakken oil with increased rail traffic. A strong link to OPEC markets, however, shows the United States won't break off completely. While the glut of North American crude oil will reshape the markets, it can't logistically redefine them.

By Daniel J. Graeber of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment
  • Synapsid on March 31 2014 said:
    The Motiva refinery in Port Arthur, Texas has a capacity of 600 000 barrels of oil a day. It's owned 50% by Royal Dutch Shell and 50% by Saudi Aramco. I expect that Saudi Aramco will make sure the refinery gets all the crude it needs so we'll be seeing appreciable amounts coming from Saudi Arabia in spite of Canadian crude backing out imports.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News