ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How Did America Reduce Its Dependency on Middle East Oil?

Updated on January 22, 2020
US oil production exceeded 15 million barrels per day
US oil production exceeded 15 million barrels per day

In light of the escalating tensions in the Middle East, many questions arise about the impact of geopolitical crises on the global oil market.

Journalist Robert Rabee said in a report published by the American Oil Price that the Middle East currently produces about a third of the world's oil, and that the most important countries exporting to it in the region during 2018 are Saudi Arabia (12.3 million barrels per day), and Iran (4.7 million) , Iraq (4.6 million), the United Arab Emirates (3.9 million), Kuwait (3 million), and Qatar (1.9 million). By way of comparison, the writer mentioned that the American production of oil during the aforementioned year amounted to 15.3 million barrels per day, meaning that it was greater than the production of three countries combined, namely Iran, Iraq and the UAE. The writer pointed out that the international sanctions imposed on Iran greatly affected its ability to export oil. As it was stated in the latest report issued by the Organization of Petroleum Exporting Countries (OPEC) on its markets that Iran's production decreased by about 40% between 2018 and the end of 2019.

On the other hand - the writer says - American imports of Middle East oil have witnessed major changes in recent years, especially with the increasing dependence on shale gas extraction. According to the figures of the Energy Information Agency in the United States, the highest point in American imports of Arab Gulf oil was 2.8 million barrels per day during the year 2001. At that time, this amount represented 23% of the total imports of states from crude oil, which is 11.9 million barrel.

The author adds that by 2008 oil production increased in the United States, while demand for fuel increased. American imports of crude oil increased to 12.9 million barrels per day, but the share of the Gulf countries decreased to 18.6%, by 2.4 million barrels. As for 2018, the writer confirms, the effect of the American dependence on shale gas extraction was evident, as US imports of crude oil decreased to 9.9 million, bringing the share of the Arab Gulf states to less than 1.6 million barrels. Data reported by Reuters indicates that the United States consumes 20 million barrels per day.

The Largest Exporters

The writer mentioned that the United States imports from Gulf crude oil, accounting for Saudi Arabia by 57%, while Iraq’s share of them is 33%. And imports of the Middle East, in particular, to the Gulf of Mexico and the West Coast. Canada is now the most important source of US oil imports, at 4.3 million barrels per day, according to estimates for the year 2018.

The writer emphasized that the American dependency on the Middle East oil has witnessed a decline, despite the fact that oil production in this region rose by about 5 million barrels per day during the past decade, which means that the rest of the world imports oil from this region increasingly.

According to data published by Reuters, although the United States has become very dependent on Canada to fill a large amount of its deficit. It is also still dependent on Saudi Arabia, Iraq and other Gulf countries because most American refineries prefer oil in this region.

Concerns

About 20% of the world's oil passes through the waters of the Middle East near Iran, so a significant proportion of the global oil trade will be in danger if escalation and tension continue in the Middle East, according to the Oil Price report.

In the opinion of the author that if these fears materialize, we will witness a sharp rise in the price of Brent crude, which is standard for pricing two-thirds of the world's oil production, more than the rise of WTI, which is a standard in controlling prices in the United States. Without a doubt - the author adds - the impact of such a crisis on the global economy today will be much less than it was ten years ago, thanks to the boom in shale gas extraction in the United States.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://maven.io/company/pages/privacy

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)