The U.S. Just Became a Net Oil Exporter for the First Time in 75 Years

[thackney]

The U.S. Just Became a Net Oil Exporter for the First Time in 75 Years
https://www.bloomberg.com/news/articles/2018-12-06/u-s-becomes-a-net-oil-exporter-for-the-first-time-in-75-years

America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal -- even if likely brief -- moment toward what U.S. President Donald Trump has branded as "energy independence."

The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.

While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time.

“We are becoming the dominant energy power in the world,” said Michael Lynch, president of Strategic Energy & Economic Research. “But, because the change is gradual over time, I don’t think it’s going to cause a huge revolution, but you do have to think that OPEC is going to have to take that into account when they think about cutting.”

The shale revolution has transformed oil wildcatters into billionaires and the U.S. into the world’s largest petroleum producer, surpassing Russia and Saudi Arabia. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century. The cartel and its allies are meeting in Vienna this week, trying to make a tough choice to cut output and support prices, risking the loss of more market share to the U.S.....

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Weekly U.S. Net Imports of Crude Oil and Petroleum Products
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTTNTUS2&f=W

[Wingnut]

This is good news....right?

[IsailedawayfromFR]

This is good news....right?

Indeed ,in every sense of the word.  It is the right thing at the right time to the right country.

In so many ways, it helps by reducing trade deficits, by increasing American jobs and manufacturing, by allowing consumers to reduce energy costs, and by neutering OPEC.

[IsailedawayfromFR]

The U.S. Just Became a Net Oil Exporter for the First Time in 75 Years
https://www.bloomberg.com/news/articles/2018-12-06/u-s-becomes-a-net-oil-exporter-for-the-first-time-in-75-years

America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal -- even if likely brief -- moment toward what U.S. President Donald Trump has branded as "energy independence."

The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.

While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time.

“We are becoming the dominant energy power in the world,” said Michael Lynch, president of Strategic Energy & Economic Research. “But, because the change is gradual over time, I don’t think it’s going to cause a huge revolution, but you do have to think that OPEC is going to have to take that into account when they think about cutting.”

The shale revolution has transformed oil wildcatters into billionaires and the U.S. into the world’s largest petroleum producer, surpassing Russia and Saudi Arabia. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century. The cartel and its allies are meeting in Vienna this week, trying to make a tough choice to cut output and support prices, risking the loss of more market share to the U.S.....

= = = = = = = = = = = = = = =

Weekly U.S. Net Imports of Crude Oil and Petroleum Products
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTTNTUS2&f=W

Good to see this.

Still skeptical of the previous post coming thru though.  http://www.gopbriefingroom.com/index.php/topic,340296.msg1845172.html#msg1845172

[thackney]

Good to see this.

Still skeptical of the previous post coming thru though.  http://www.gopbriefingroom.com/index.php/topic,340296.msg1845172.html#msg1845172

I had my own doubts as well.  I admit this week was an outlier and the trend hasn't reached the point where we are staying in the black and not in the red.  But we had come farther than I realized.  But oil at $50 or less is going to drive this away.

[Fishrrman]

I'll ask impertinent questions:

Why are we "exporting" oil at all?

Why aren't we husbanding our natural resources for future generations?

[InHeavenThereIsNoBeer]

I read in the last day or so that OPEC voted to cut production "more than expected".  Is it realistic to assume that we could make up for their cut?

My gut says it's easier for them to temporarily cut back production than it is for us to increase production to match, but I really don't know anything about the logistics to back that up.  I also think that due to the nature of a cartel and the demands on their governments, they really can't cut back by all that much.

Have the advances in extraction (and perhaps an administration who isn't blatantly hostile to the industry) gotten us to (nearly) the point where we can just say, "Hey, thanks, more money for us"?

I'm sure it's incredibly complicated, I'm just wondering if we're getting anywhere near the neighborhood.

[IsailedawayfromFR]

I'll ask impertinent questions:

Why are we "exporting" oil at all?

Why aren't we husbanding our natural resources for future generations?

One can say that about any type of product, from soybeans to automobiles to oil.

We export to make money on all of them.

[IsailedawayfromFR]

I read in the last day or so that OPEC voted to cut production "more than expected".  Is it realistic to assume that we could make up for their cut?

My gut says it's easier for them to temporarily cut back production than it is for us to increase production to match, but I really don't know anything about the logistics to back that up.  I also think that due to the nature of a cartel and the demands on their governments, they really can't cut back by all that much.

Have the advances in extraction (and perhaps an administration who isn't blatantly hostile to the industry) gotten us to (nearly) the point where we can just say, "Hey, thanks, more money for us"?

I'm sure it's incredibly complicated, I'm just wondering if we're getting anywhere near the neighborhood.

Our oil does not happen overnight.  It is incremental and caused by thousands of wells and improved technology occurring.

Those in Opec have fantastic huge oil fields with a small number of wells where the spigot can be turned off or on.  It is a lucrative way to produce oil and its costs per bbl are a magnitude below ours.

Unfortunate for them, oil comprises the main source of revenue for them, unlike the US.  So it impacts them disproportionately negatively when oil is
shut in or prices fall.

And I think like you, a cartel cheats so production is not what is publicly announced.

[thackney]

I'll ask impertinent questions:

Why are we "exporting" oil at all?

Why aren't we husbanding our natural resources for future generations?

Mostly we export expensive light sweet oil and import cheaper heavy sour oil.  We can do this because we have more advanced refineries.  This also helps the trade balance.

We are fortunate most of our petroleum resources are privately owned and not controlled by the government like most nations.  It is the primary reason we are so productive with those resources.