Regional logistics create even more variation in the oil trade balance, refineries across the United States are sourcing their oil from 48 countries in total. As one example, the California Energy Commission reports that foreign imports made up more than 57% of oil used in California refineries during 2018 with Saudi Arabia comprising the largest foreign source.
Despite substantial importation of crude by U.S. refineries, refined products are providing the counterbalance in international trade. Product exports have skyrocketed over the past 15 years from a steady 1.5 mBPD in 2005 to 8.8 mBPD in 2019. These products depart U.S. soil for 140 different countries and our neighbors Mexico and Canada are, unsurprisingly, the largest destination.
Further blurring the line between imports and exports from a national viewpoint is the extent of foreign investment in the U.S. oil industry, for example Saudi Arabia owns the largest oil refinery in the U.S. at Port Arthur, Texas.
Although it’s true that the United States has recently been a net exporter of petroleum, the details are extremely complex. It’s likely the US will remain a net importer of unprocessed crude oil for the foreseeable future, but with some luck product exports will continue to benefit the balance of trade. One thing is for certain, with petroleum produced in many places and used in many more, the global logistics of “oil” will continue to intertwine most countries across the planet.