for Crude Oil Imports
One solution to reducing dependence on imports would be to build pipeline capacity connecting the Bakken area to refineries on the East Coast.
With domestic production rising and OPEC reducing sales to Asia, the U.S. has taken advantage of shifting market conditions by shipping more crude to customers overseas. The U.S. exported an eye-opening 900,000 b/d of crude during Q1, with volumes going to 24 different countries.
Despite the DOE and others making the case for a slimmer Strategic Petroleum Reserve, the U.S. is still vulnerable to wild price swings and global supply outages.
In order for prices to break out of the current range of $40-$50, there needs to be a sharp drawdown in crude stocks, but so far that hasn't happened.
Meg Jacobs, a Research Scholar in the Woodrow Wilson School at Princeton University, spoke with The Fuse about her new book, "Panic at the Pump," which explores why the U.S. government has failed to put together long-term energy solutions.
With China's economy slowing, India has stepped up as the world's main center of oil demand growth. This means its thirst for crude oil imports will continue to grow.
Despite the decline of volumes on the tracks and controversies surrounding safety, crude shipped via rail is here to stay, given there isn’t currently pipeline capacity to move supplies from the prolific Bakken plays to the coasts.
Europe's status as a substantial importer of energy is well known, but what is less known is that the rate of dependence on oil imports is much higher compared to its dependence on imports of natural gas.
The two OPEC Latin American countries, Venezuela and Ecuador, have always held unique positions in the global oil market because of their geographical advantage of being close to the U.S. But both have seen their importance fade dramatically against the backdrop of rising North American production and the drastic fall in oil prices.