
The Sierra Club Blog – Compass (which you should be reading!) tipped me off to the following information about US oil production and exports during a time when Republican leaders are pushing for increased access for oil companies to off-shore and Alaskan oil fields.
US refined oil product exports soared in the first four months of the year, reaching 1.6 million barrels a day, according to this Reuters article. February exports hit a record 1.8 million barrels a day. (The average export amount is 1.2 million barrels a day.) We’re literally shipping away our own gasoline and diesel fuel to other nations.
The surge in exports appears to contradict the pleas from the U.S. oil industry and the Bush administration for Congress to open more offshore waters and Alaska’s Arctic National Wildlife Refuge to drilling.
“We can help alleviate shortages by drilling for oil and gas in our own country,” President Bush told reporters this week. “We have got the opportunity to find more crude oil here at home.”
“As a nation, we can have more control over our energy destiny by supplying more of the oil and natural gas we’ll be consuming from resources here at home,” Red Cavaney, president of the American Petroleum Institute, said in a letter last week to U.S. lawmakers.
But environmentalists and other opponents to expanding drilling areas could seize on the record exports to argue Congress should not open more acres if U.S. refineries are churning crude oil into petroleum products that are sent out of the American market.
“It doesn’t look good to say: ‘We need more oil.’ But then export the refined products that you’re getting. It doesn’t seem to be consistent,”
The article goes on to say that the 1.6 million barrels a day of refined petroleum products is equal to 9% of domestic refining capacity, and half of the 3.2 million barrels worth of refined products imported into the US each day.
Of course, we’re the US, and we believe in the INVISIBLE HAND…
“The fact is that the (United States) participates in global markets for both crude and refined products, and there are any number of variables that impact supply and prices in those markets,” said Bill Holbrook, spokesman for the National Petrochemicals and Refiners Association.
The White House said it was against requiring U.S. oil products to stay at home.
“Forbidding exports of U.S. petroleum reduces the incentive for domestic suppliers to produce, and could potentially lead to higher prices if U.S. production or refining declined,” said White House spokesman Scott Stanzel.
If I were a independent trucker, I’d be a little pissed to find out that we’re exporting up to 9% of our diesel refining capacity, and then paying the Saudi’s or other nation to import twice that amount.
What’s the kicker in all of this? 20 years from now, during peak production from off shore drilling, we’d be producing 200,000 barrels of oil a day (according to the EIA – warning .pdf) This would continue to be a fraction of the amount of oil products that we would export. Compass sums it up nicely:
And how much of that new production would stay here domestically and actually go to lowering gas prices? Oil Companies may claim that they want to produce energy for America, but as last weeks profits numbers proved, they really only care about one thing. Their own bottom lines.
We need real solution to our energy crisis, not handouts to oil companies who will send our American oil overseas.
Img via John at wikipedia