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Oil supply in the US and Texas is so great that imports are down. Image: Flickr
North America is Choosing U.S Oil Over Oil from Overseas
Reports indicate that refineries in Canada are importing more and more U.S. crude oil in place of oil from overseas producers.
North American refineries are increasingly turning away from more expensive oil from Africa, the Middle East and the North Sea and looking to the U.S. instead.
The less reliant North America is upon nations in potentially unstable regions for its energy needs, the more powerful the region will become. Therefore the fact that it is growing more self-sufficient in this area can be said to be a major step in the right direction.
Foreign Oil Imports Decreasing
OPEC nations have expressed concern about America’s domestic oil production, as increases in the amount of this commodity that are supplied by the U.S. have meant that there is now less demand for oil from elsewhere.
U.S. oil imports from Angola fell to eighty-five thousand barrels per day in March, which is the lowest level they have reached in twenty years.
In February, oil imports from Nigeria decreased to one hundred and ninety-four thousand barrels, which is a nineteen-year low.
It is clear that the U.S. is quickly approaching the point where it will no longer have to rely on other countries for its energy needs.
Shale Oil Reserves
Refineries in the east of Canada imported an average of one hundred thousand barrels of U.S. oil between January and the end of March this year, which is up from a historical average of approximately twenty-four thousand barrels per day.
The rise in shale oil reserves in the U.S. is partly responsible for the large quantities of oil that the nation now produces. According to a report by PricewaterhouseCoopers, these reserves will comprise up to twelve percent of international total crude oil production by 2035.
Shale oil reserves are a blessing. They contribute significantly to U.S. energy independence, increasing the nation’s global standing.
Cheaper Oil
There is no reason for U.S. and Canadian companies to opt for oil from halfway across the world when they have ample supplies of this commodity in their own backyard.
Importing oil from the Middle East and other similar regions puts power in the hands of the nations that the oil originates in. Producing oil domestically means that the U.S. does not have to rely upon other nations for its energy needs.
The oil boom has resulted in cheaper oil for North American businesses. Companies in both Canada and the U.S. are benefiting from being able to purchase this valuable source of energy at a lower cost.
It is perhaps not surprising that other oil-producing nations are beginning to get nervous. The U.S. oil boom means that the nation is now a major player when it comes to energy production.
The impact of the boom has been so great that the entire world oil market has been reshaped. Many experts believe that it is only a matter of time before America becomes the world’s number one oil producer, which means that further changes to the market are to be expected.
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