Heavier crude oils contain more complex molecules, so they are better for producing many of these niche products. While transportation runs primarily on motor fuels, our society also depends on thousands of products that begin as crude oil. Serve niche product markets for chemicals, petrochemical feedstocks, lubricants, waxes and materials for roads and roofs.Make the most high-value motor fuels and other petroleum products in a cost-effective manner and,.In general, refineries match their processing capabilities with types of crude oils from around the world that enable them to: continues to import and export crude oil because the viscosity of oil (measured by its API gravity) being light or heavy and its sulfur content being low (sweet) or high (sour) largely determine the processes needed to refine it into fuel and other products. refining and refined product pipelines along the Gulf Coast and in the middle of the country:Ĭrude oil is not a homogenous product. The map below shows the concentration of U.S. Florida, Oregon and the New England states are prime examples of states that depend heavily on more expensive transportation modes and imports. Gulf Coast regions.Īt the same time, many states with high motor fuel demand lack such infrastructure and instead receive fuels via shipping, rail and trucking. continues to import crude oil and refined products is that much of the infrastructure to produce oil, as well as refine and transport fuels, is in the mid-continent and U.S.

Oil production, refining and demand can differ geographically. petroleum trade and the policies that foster that trade have complemented the strength in domestic oil production, which in turn has helped to increase global supplies and keep oil prices relatively low and less volatile. Let’s discuss three factors – oil location, quality and quantity – to understand how U.S. This underscores the need for flexibility in trading oil internationally – marketing supplies that might not match local needs to global buyers – which is integral to unlocking the United States’ productive potential.įor these reasons and others it’s neither practical nor in our country’s best interest to keep American oil here at home and opt out of the global crude market. This means that physical characteristics – such as where oil is produced versus where there is refining or manufacturing plants, or the location of the greatest consumer demand – affect its usefulness and therefore value.Īt the same time, you need different kinds of oil to make different products and, despite the rapid increase in domestic oil output, significant portions of the oil that is being produced here may not be what is needed to make all of the products Americans use.

It must be refined into the fuels, feedstocks, materials and products that we purchase and use in our daily lives. Answers are found in an understanding of basic market realities.įirst, while we point out that oil is a global commodity, almost no one consumes oil directly. In fact, these kinds of questions recently became a partisan flashpoint on Capitol Hill, with a group of Senate Democrats advocating the re-imposition of a ban on crude oil exports. And, while we’re still importing oil, why do we export domestic crude – especially when prices have risen at the pump? Why don’t we just keep American oil at home?

That said, given our country’s much improved energy outlook, some may question why we’re still importing crude oil and refined products. energy security, lowered the trade deficit and boosted economic growth. With Wall Street Journal headlines such as “Trans-Atlantic Oil-Price Spread Soars as Supply Glut Disappears,” it might be hard to remember that the United States’ domestic oil production stood at a record 10.5 million barrels per day (mb/d) in April, and the nation’s petroleum trade balance is in its best position in 50 years.

America net exporter of oil