OIL: The Import/Export Game

OIL:  The Import/Export Game

It's not enough that the U.S has engaged in any and all wars across the Middle East.  Ten years ago, it started as a "War on Terror" in response to 9-11 but continues to spread anywhere there are rocks and sand, possible terrorists and people who (paraphrased) "need to come out of their cave dwelling life style" and get with the times.

So what does America REALLY want?  To bring "democracy" to all people?  Oil?  Power?  Something to distract the American people?  Ask yourself, "WHY are we STILL in the Middle East?"  If you stop to think about what it costs for the U.S to be engaged in these wars and the fuel being spent all for the 17% of oil that is imported FROM the Middle East, it doesn't seem to make good sense.

We Got Saddam .  We got Bin Laden.  But We Haven't Got Enough.
According to the "Cost of War" website,  "To date, the total cost of war that has been allocated by Congress is $1.26 trillion, with $815 billion to Iraq and $445.1 billion to Afghanistan..."  It goes on to say that future costs are not calculated--such as medical care for soldiers and wounded veterans.  Nor does it include the interest on borrowed money which contributes to the national debt.  As taxpayers and consumers, that cost is being passed on to you.

Is it About OIL?

The EIA (U.S. Energy Information Administration), breaks down America's petroleum usage:  "Although we are the third largest crude oil producer, about half of the petroleum we use is imported" (see Net Imports and Domestic Petroleum as Shares of U.S. Demand chart).  "Western Hemisphere nations provide about half of our imported petroleum"  (see Sources of U.S. Net Petroleum chart).  What begs the question is if we--the U.S.--are the world's third largest producer of petroleum, where is it going?

Phone a Friend
The general public is not well informed.  I don't believe most people have any burning desire to know or care when everything seems out of their control.  I had to phone a friend and financial wiz, Dr. Schwegel.  He put it to me like this:  "U.S. oil exports are up to ~1.6 million barrels a day. That's 9 percent of total refining capacity: 17.6 million barrels (abbreviated "bbl," which stands for blue barrels - Standard Oil shipped oil in blue colored barrels & were 42 gallons, for evaporation instead of 40 gallons - like a baker's dozen.

By contrast, we import something like 13 MMbbl (13 million barrels) daily. Main recipients of our oil exports: Mexico, Canada, Chile, Singapore and Brazil.

So why do we both import AND export? Is the fact that we export a reason not to drill off-shore on in Alaska, as some argue, since it implies that scant supply isn't the issue?

Look, first of all, being both an importer and an exporter of what seems like the same thing is increasingly the nature of world trade. California imports strawberries from South America; California GROWS strawberries to send everywhere else. Lots of factors are involved. But the most obvious is geography.

If I drill and refine oil in Montana, and you're right across the border in Calgary, Canada, and I export oil to you. Your Canadian cousin drills and refines oil in Quebec. She exports to me in Maine. A lot cheaper than shipping Quebec to Calgary, Billings to Bangor. And indeed, Canada is both the biggest importer of U.S. oil AND the biggest exporter of oil TO the U.S.

There are other factors to consider: personal relationships, institutional ties, the logistics of shipping. Singapore, for example, exports huge amounts of Asian goods to the U.S. When the ships have to go back to Singapore, we might as well put SOMETHING in them."

Geography:  Don't Worry.  We're Not Even Close.
So why IMPORT from Saudi Nations?  It's not a matter of "geography."  Do we just happen to have a tanker in the water and need to fill it up?  Besides keeping peace in Israel, I don't think we need the Middle East.  They cost us more than they are worth.