The United States of America is once again a Net Exporter of Oil

Despite the efforts of the Obama Administration

America’s oil boom continues, on state and private lands.

On Federal Lands, not so much…

America the Independent: Oil Production Ready to Overtake Imports

by Walter Russel Meade
The American Interest

The still-young but fast-growing US energy boom is closing in on a big milestone. Thanks to shale, domestic oil production is about to overtake oil imports. CNBC reports:

Andrew Lipow of Lipow Oil Associates expects the government data to show that U.S. production actually surpassed imports in March, when it releases its final March data at the end of the month. [...]

The Energy Information Administration said Wednesday in its Short-Term Outlook that U.S. oil production averaged 7.1 million barrels per day in the first quarter, and that should rise to 8.5 million barrels per day by the fourth quarter of 2014.

It expects average production of 7.4 million barrels per day in 2013, up from 6.5 million barrels per day in 2012. EIA also said it expects liquid fuel net imports, including crude and petroleum products to keep falling, from 7.4 million barrels per day in 2012 to 5.7 million barrels per day by 2014.

This is excellent news for the US. Greater domestic production is a boon to the economy, and fewer imports gives us more flexibility when dealing with the world’s petrostates.

Just remember, the watermelons said it couldn’t be done, and have been proved wrong, yet again.

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Posted by on May 10, 2013.
Filed under Economics, Energy, Oil.
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  • 914

    Barack will not stand for this.

  • GarandFan

    No worries. Barry will simply take credit for it. And the simpletons will just nod their heads in agreement.

  • jim_m

    If we are a net exporter the only reason for gas prices to continue at their current level is because of government taxes and from the government caused restriction in refining capacity which causes us to export crude and import finished products like gasoline.

    • Commander_Chico

      No it is because the oil market is a world market set by worldwide demand.

      Same as the market for finished petroleum products. A worldwide market of a fungible product.

      If the USA is importing finished petroleum product, it is no different from the US importing any other product.

      The USA’s gasoline prices are very low. Gasoline taxes are also low and among the fairest taxes there are, because the government builds the roads that vehicles ride on. They are unfair only in the sense that they are too low to pay for even half the cost of roads.

      • jim_m

        Gas taxes are extremely regressive since they fall on those who need to work for a living more than the wealthy. They also fall disproportionately on people who live outside of urban areas and who lack access to public transportation.

        If the US imports gasoline because it cannot refine it at home, then the US is importing a product unnecessarily. The refineries opened in the last 20 years have very small capacities and are classified as simple refineries. The last complex refinery was built in 1977. Only an ass would assume that our needs for refined petrochemicals have increased so slightly.

        Unlike other imports refined petrochemicals is a critical industry for national security. Having a local industrial base is a way to protect our nation. The left has seen fit to do its best to crush this industry.

        • Commander_Chico

          One thing I’ve noticed about you, Jim, is that for all of your ranting about “the left,” you will use leftist arguments when it suits you. The gasoline tax isn’t progressive enough? That’s a very questionable proposition but framed in a leftist way.

          The people that use the roads pay the tax. If they are doing road transport business, they can pass the cost to their customers.

          Very few people, including “the wealthy” do not work in the USA.

          Anyways, your initial assertion that gasoline prices in the USA are too high is ridiculous.

          • jim_m

            My point is not that the gasoline tax is not progressive enough, but that you are a rank hypocrite for being in favor of progressive taxes when it suits you and then screwing the poor whenever you think you can get away with it.

            You claim that gas taxes are too low in the US and use Europe as an example. The reason EU gas taxes are so high is (with the exception of the UK) because they generally are not significant producers of oil and never have been.

            Funny also that you think that obama was spot on with his whole “you didn’t build that” BS, claiming that businesses reaped the value of having that government built road system. Now you are saying that it is the people who use the roads that should pay taxes for them. Your beliefs on who should pay taxes is remarkably flexible. You pretty much think that you should be able to levy taxes to punish anyone you please and you can constantly use the same excuse to tax different people for the same damn thing.

    • http://wizbangblog.com/author/rodney-graves/ Rodney G. Graves

      Federal and State (especially those states with a sales tax) governments make more money on a gallon of gasoline than any other entity in the production and distribution chain.

  • antred

    The author of this article seems to be firmly in the camp of the mathematically challenged. To be a net exporter of oil, a country has to export more than it imports. Whether it PRODUCES more than it imports is irrelevant.

    The U.S. is still (and has been since the 1940s) a net IMPORTER of crude oil, and it is extremely unlikely that it will EVER become a net exporter again.

    The U.S. presently consumes around 18 million barrels of crude per day, only 8 million barrels of which are produced domestically. That very decidedly makes the U.S. a net IMPORTER of crude.