• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 2 hours California's Oil Industry Collapses Despite Shale Boom
  • 3 mins Greenpeace Blocks BP HQ
  • 6 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 11 hours The Consequences: Full-Blown Trade War Will Push World Towards Recession
  • 7 hours Australian Voters Reject 'Climate Change' Politicians
  • 2 hours Shale to be profitable in 2019!!!
  • 10 hours IMO2020 To scrub or not to scrub
  • 5 hours Will Canada drop Liberals, vote in Conservatives?
  • 14 hours Global Warming Making The Rich Richer
  • 5 hours UK Needs New Wind Turbines
  • 11 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 16 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 14 hours California Threatens Ban on ICE Cars
  • 7 hours Wonders of Shale- Gas,bringing investments and jobs to the US
  • 5 mins Get First Access To The Oilprice App!
Alt Text

Washington Turmoil Roils Global Oil Markets

Turmoil in the United States…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

America: Export Nation?

There’s some interesting data emerging on the world trade situation.

One of the surprising things is the U.S. export market is actually fairing reasonably well.

People often pan America for having no exports. It's a common complaint the U.S. doesn't produce anything the rest of the world wants.

This is untrue. These critics latch onto the fact the U.S. produces almost no consumer goods. America doesn't make t-shirts and CD players. It's just not cost effective for these low-end products.

American export value peaked in early 2007 at just under $340 billion quarterly. Of that, only $40 billion came from consumer products.

What America does produce is capital goods. Engines, boilers and factory components. High-value products that are used by developing countries to make lower-value things. America gets 40% of its export revenue here.

And even with the global crisis, the capital goods market has remained relatively firm. Exports peaked in Q2 2008 at $118 billion for the quarter. In the first quarter of 2009, as the crisis broke, they fell to $95 billion. But capital exports held fast at these levels through the second and third quarters of 2009. We'll get the fourth quarter numbers soon, and see if the trend keeps up.

Although this is a 20% decline, it's quite shallow in the big scheme of things. Exports today are at the same level as in 2006. Still 35% above 2003 levels.

Signaling that high-value products might be a good place to be. There are still factories being built globally. And there aren't many places builders can get the components. America may hold a strong niche.

One reason not to write the U.S. off in the economic order.

Here's to doing your thing,

By. Dave Forest of Notela Resources




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Anonymous on January 21 2010 said:
    let's not forget how the export numbers are aided by being the leading exporter of death, that being the number one arms exporter in the world.
  • Anonymous on January 22 2010 said:
    I studied engineering in Chicago and L.A., and worked as an engineer successfully for the U.S. Navy, and unsuccessfully in L.A. I have taught (economics) at engineering schools in Singapore, Bangkok, Lisbon and Sydney (Australia). If the U.S. got down to business, as they did during WW2, they might be unbeatable again. What's the problem I ask - although I know the answer.

Leave a comment




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