| Greetings, Utah Energy United! Why do we import oil? Why do we export it? You’ll hear that the United States is a “net energy exporter” and it seems to imply that since we’re sending out more than what’s coming in, why not just be fully self-sufficient? It seems elegant in its simplicity, but unfortunately the complexity of the world intrudes and defies simplicity. The good news is that the American energy system is one of the strongest and most resilient in the entire world. In today’s blast, we’ll explain how. The American Petroleum Institute recently sent out an email titled “The Flexible Energy System Behind American Energy Leadership.” They’ve broken the issue down into easily digestible sections that explores the issue from a number of angles. Long story short, crude oil is a globally traded commodity and not all crude oil is created equally, or even the same. From the article: “Some crude oil is lighter and easier to refine into products like gasoline, diesel and jet fuel. Other crude oil is heavier and requires more specialized refining equipment.” This point dovetails into why imports are important, and in particular why they’re vital with our neighbors to the north, Canada. “Today, Canada supplies 64% of U.S. crude oil imports — more than every other country combined. There’s a reason: Canada produces the heavier crude oils many American refineries are better equipped to process and is connected to key U.S. refining regions through an extensive network of pipelines.” On the flipside, “By exporting lighter crude oils produced domestically to refineries around the globe, global markets operate more efficiently while supporting continued investment in American production. As the world’s largest producer of oil, U.S. production plays a critical role in helping meet global demand and reducing the risk of even greater market volatility.” The article continues: “The United States is also home to one of the world’s largest and most sophisticated refining systems, producing gasoline, diesel and jet fuel for consumers in the United States and around the world. As a result, the United States not only trades crude oil, but also fuels. Together, these flows help support an efficient refining system, strengthen energy security and ensure energy can move where it is needed most.” That last sentence is particularly noteworthy because where oil is produced doesn’t always match where it’s needed. Anyone who has worked in the oil and gas industry for any length of time knows that each basin has its own advantages and its own disadvantages, and this doesn’t even take into account areas of the country that have basically ZERO production at all like Hawaii, Virginia, Missouri or Idaho. Some countries are resource-rich, others have none at all. But every last one of them needs oil to exist in a modern society. The bottom line is that imports and exports fortify a system that has served the United States well and help “create a more flexible and resilient energy system that is better equipped to respond to disruptions.” You can read the entire API post here. Thank you for your continued engagement with Utah Energy United. Happy Friday! Be sure to follow us on X, Facebook, and LinkedIn. And if you know someone who should be a part of Utah Energy United, get them to sign up here. Rikki Hrenko-Browning President Utah Petroleum Association 6905 S. 1300 E. #288 Cottonwood Heights, UT 84047 (435) 219-0963 rhrenko-browning@utahpetroleum.org  |
UTAH ENERGY UNITED: Imports & Exports