• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 14 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours Reality catching up with EV forecasts
  • 2 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 12 days US Oil Independence is a myth and will always be a myth
  • 2 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 8 days The Federal Reserve and Money...Aspects which are not widely known
  • 16 days Natural gas price to spike when USA is out of the market
  • 12 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 15 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 16 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Iraqi Supreme Court Ruling May Reignite Kurdish Oil Dispute

Iraqi Supreme Court Ruling May Reignite Kurdish Oil Dispute

The Supreme Court decision renders…

Offshore Oil And Gas Is Back, Baby

Offshore Oil And Gas Is Back, Baby

Despite calls to reduce oil…

Oil Gains Momentum On Strong U.S. Economic Data

Oil Gains Momentum On Strong U.S. Economic Data

Oil continued to gain momentum…

Taras Berezowsky

Taras Berezowsky

Taras is a writer for MetalMiner who operate the largest metals-related media site in the US according to third party ranking sites. With a preemptive…

More Info

Premium Content

U.S. Now Net Fuel Exporter: Good News or Recessionary Rumblings?

Much has been made of last week’s data released by the U.S. Energy Information Administration (EIA) indicating that the US is, once again, a net exporter of fuel — for the first time since 1949.

When the Wall Street Journal first reported the story, it seemed like very good news, and the initial reactions all pointed toward the potential for the US to become energy independent. EIA data showed the country as having net exports of 64 million barrels of various petroleum products through the first nine months of the year, according to the WSJ.

The article maintains this is because emerging markets are demanding increased quantities of fuel, as their economies grow at rates much higher than that of the US. It even quoted energy analysts as saying this net-export trend will stick.

It looks like a trend that could stay in place for the rest of the decade,” Dave Ernsberger, global director of oil at Platts, told the paper. “The conventional wisdom is that U.S. is this giant black hole sucking in energy from around the world. This changes that dynamic.

ADVERTISEMENT

Whoa whoa whoa, hold on a second there. Before we get too far ahead of ourselves and deem this the official beginning of the end of the US energy quandary, shouldn’t we perhaps consider that the trend is what it is? In other words, quite simply a product of our domestic economic recession coupled with emerging market growth — as opposed to Americans wanting to consume less fuel? Will this 2011 trend really “change the dynamic” for good?

Case in point: another quote by another analyst, much further into the article. “Now, ‘we’re not using as much,’ said James Beck, an analyst at the EIA. ‘Prior to 2008, basically anything we produced, we used.’”

Well, sure: prior to 2008, the US middle class wasn’t crippled by historically low unemployment rates and a severely depressed housing market, among other things. Who’s to say that, if things begin looking up in 2013, the US doesn’t begin consuming petroleum goods like crazy again? Just as the winter holiday season — namely, Christmas — doesn’t stop millions from buying useless junk made for cents on the dollar in Asia or South America, a healthy uptake in employment, for example, may get Americans guzzling gas tout de suite.

ADVERTISEMENT

Not to mention that petroleum refiners are facing much smaller margins. Also, regulations threaten to hamper the refiners’ efforts, which could harm the manufacturing sector’s comeback even further. If the likes of China, India, Brazil and others stop growing, they stop buying — and if that happens while the US rebounds, we’re back to square one.

Don’t get me wrong: it’s in everyone’s best interests, not least all US manufacturers, for the economy to grow much faster than it has been. But with shale gas infrastructure still nowhere near that of petroleum (with petrol refining arguably the main reason we’re exporting so efficiently), it will take years for gas to become mainstream enough to viably share the energy market with crude oil-based fuels.

Until that happens, and until the US administration adopts a solid domestic energy policy with requisite investments, higher imports of foreign oil could be right around the corner.

By. Taras Berezowsky

MetalMiner is the largest metals-related media site in the US according to third party ranking sites. With a preemptive global perspective on the issues, trends, strategies, and trade policies that will impact how you source and/or trade metals and related metals services, MetalMiner provides unique insight, analysis, and tools for buyers, purchasing professionals, and everyone else for whom metals and their related markets matter.


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment
  • Fred Banks on December 06 2011 said:
    This is an article for people who can't add and subtract. The U.S. consumes 18-19 mbd of crude, and imports 9-10-11. Am I supposed to believe that most of those imports go into oil products?I'll have to look in my new textbook for recent numbers, if and when those people decide to publish it, but once I get those numbers, I don't think I'll have to tell my publisher that I made any mistakes where oil is concerned.As for energy, well maybe this article has something to tell us. Maybe. What I dont like to see though is this business about the US Administration adopting a solid energy policy - domestic or otherwise. THEY wouldn't know what a solid energy policy is.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News