The global oil industry has influenced U.S. domestic and foreign policy decisions for a long time. It has been observed that the United States plays a key role in the global oil market, not only as a leading consumer of crude oil, but also as the biggest oil producer. According to the U.S. Energy Information Administration (EIA), the United States surpassed Russia and Saudi Arabia as the number one crude oil producer globally in 2018 (U.S. Energy Information Administration, 2018). The U.S. policy related to oil has been always focused on substantial technological advancements. This explains why the United States has high oil production.
In the global oil market, oil availability suggests energy independence and security. Supply, demand, and the overall strength of currencies are essential factors that determine the price of oil globally. Since the United States is a leading consumer and producer of oil, it plays a fundamental role in influencing the global oil industry. It has been reported that Congress is persistently focused on developing policies that can influence the global oil market. Such policies are designed in such a way to include various sanctions, oil standards, and emission controls (U.S. Energy Information Administration, 2018). The U.S. oil industry is properly structured to reflect certain implications and developments in the global oil market. Despite the fact that the United States has emphasized its energy independence recently, it will still continue its oil imports as a result of the unique structure and demands of its oil market.
Specificity of the Oil Industry Structure in the United States
The U.S. oil industry is represented by a substantial number of companies engaged in the exploration, production, and distribution of oil. Some of the major oil companies operating in the United States refer to Shell, Exxon Mobil, Chevron, and Total (Greenley, 2019). These companies have operations in all of the industry phases included in the oil industry.
As part of the oil industry structure in the United States, it is important to understand the implications of crude oil transportation. Since the greatest volume of oil goes by oil pipeline, the United States has been actively engaged in expanding the size of its interstate oil pipelines. A vertical industry such as the U.S. oil industry has specific supply chain challenges (U.S. Energy Information Administration, 2018). It is apparent that oil transportation is linked with the use of special equipment and compliance with strict regulatory and safety procedures. Thus, logistics in the U.S. oil industry apparently require a significant sense of urgency and visibility.
Pipelines represent the most prolific method of distributing oil. Through 70,000 miles of crude oil pipelines in the United States, the country is able to move more than one billion gallons of oil to refineries on a daily basis. When they are built, pipelines are considered a cost-effective mechanism to move oil across the United States (Greenley, 2019). However, this component of the oil supply chain comes with risks that should be adequately evaluated to avoid major incidents. Since most pipelines are underground, oil is moved at high pressures which increases the risk of oil spills.
Based on the type of operations performed by U.S. oil companies, experts in the sector emphasize the development of a different logistics strategy. Traditional oil operations in the United States are closely associated with essential logistics activities, particularly trucking and warehousing (U.S. Energy Information Administration, 2018). Irrespective of the basic operations involved in the U.S. oil industry, greater coordination of truck transportation is usually required (Greenley, 2019). At the same time, U.S. oil companies are expected to improve their safety ratings and compliance requirements.
The process of standardizing compliance in the U.S. oil industry appears rather challenging, considering the role of different carriers in the sector. In this context, it is vital to refer to the role of logistics providers, as they have the expertise to drive significant changes in improving the oil industry structure in the United States (Greenley, 2019). In this context, it has become important to develop effective safety programs that can be properly monitored and updated under the conditions of continuous change.
It is apparent that safety remains a top priority in the U.S. oil industry. Therefore, solutions providers need to focus extensively on safety and compliance as part of the process of decreasing costs related to the production and distribution of petroleum products (U.S. Energy Information Administration, 2018). Similar issues are prevailing across the entire supply chain, implying the importance of adopting a holistic approach to assessing the performance of the respective sector.
Due to the inconsistencies found in the U.S. oil supply chain, it is important to implement supply chain management principles. It has been reported that the U.S. oil industry is still in the early stage of properly managing its supply chain. The inflexibility of the sector is reflected in the way energy companies manage different aspects of the oil supply chain (Greenley, 2019). There should be greater emphasis upon the efficient distribution of petroleum products among consumers, along with improved transportation modes and warehouse management practices.
Improvements of the U.S. Oil Supply Chain
In line with the requirements for safety and compliance in the U.S. oil supply chain, it is important to consider certain routes for improvements. In this context, it would be appropriate to address the implications of cost cutting procedures in the U.S. oil industry. Rediscovering the opportunities inherent in improved efficiency has become a relevant topic in this sector (Greenley, 2019). For instance, independent operators in the United States have pursued a strategy to increase production per well, whereas decreasing cost per barrel. This has been possible with the implementation of horizontal drilling techniques and super fracking. In turn, overdue cost improvement can be observed in the long term.
Furthermore, it is important to focus on the opportunities of vertical integration in the U.S. oil supply chain. Collaboration has emerged as an effective way to decrease costs and simplify the procedures related to contractor management (Worland, 2019). Such collaboration is associated with the process of finding optimal solutions in the sense of utilizing specific equipment, software, and engineering practices. In turn, substantial value can be added to consumers in the U.S. oil industry.
Most services and equipment purchases are outsourced to different providers, which has led to a rather fragmented and inefficient supplier base. It is relevant to note that more energy companies have considered the importance of bringing such services in-house, thereby it is possible to decrease coordination costs (U.S. Energy Information Administration, 2018). At the same time, these adequately developed and refined practices enable energy companies with an opportunity to provide diverse services. The emphasis is upon enhancing the capacity of drilling and production systems.
From an economic perspective, it has become a vital practice to pursue new revenue models in the U.S. oil industry. The potential of performance-based contracts is yet to be explored in this particular industry (Greenley, 2019). As previously noted, such contracts suggest the efficient combination of services and equipment, along with active participation in project financing. The introduction of new revenue models in the U.S. oil industry is a significant step toward increasing the flexibility and stability of providers.
From the perspective of consolidation of the U.S. oil supply chain, experts in the field recommend specific ways to increase concentration in the industry. Such consolidation is usually achieved by combining similar types of businesses or by pursuing integration of the field life cycle (Worland, 2019). In the conditions of oil price stabilization in the United States, there will be more opportunities for consolidation across different segments in the oil industry.
It is significant to indicate that the ongoing investment in new technologies can enable energy companies in the United States to enhance their long-term growth. At present, there has been a relevant focus on increasing efficiency of the U.S. oil supply chain. This means that advanced technologies can be utilized to improve such efficiency as a long-term strategic goal of energy companies (Greenley, 2019). There are numerous advanced services that can be pursued, as they are related to drilling processes and offshore completions. In the conditions of the ongoing technological revolution, the use of digital technologies can positively influence the process of developing new equipment and efficient service models.
Logistics of the U.S. Oil Industry
The United States has millions of miles of oil pipelines and thousands of vessels and tanker trucks that move oil from wells to refineries, and eventually to consumers. The substantial transportation web includes a series of national and regional storage sites. It is important to note that the United States has approximately 200,000 miles of pipelines for crude oil and refined products (Allison & Mandler, 2018). In turn, transportation by rail decreased since new crude oil pipelines were built. In 2017, almost 140 million barrels of crude oil were transported in the United States, but this number is lower since it represents a 60% decrease in comparison to 2014 volumes (Allison & Mandler, 2018).
In order to understand the logistics of the U.S. oil industry more thoroughly, it is important to refer to the Keystone Pipeline System. This is an oil pipeline system in both Canada and the United States, introduced in 2010 (Nerurkar, 2012). It runs from Alberta, Canada, and reaches to refineries in Illinois and Texas. Even though there have been substantial claims of advancing the controversial Keystone XL, the former president Barack Obama vetoed the pipeline in 2015 (Greenley, 2019). It has been concluded that the mentioned pipeline represented substantial risks to the environment.
However, the advocates of Keystone XL claimed that the oil expansion can move even without the proposed extension of the pipeline. At the same time, it appears that shipping oil by rail, which is a direct alternative to Keystone XL, is more expensive and may not be the most optimal option in the long term (Nerurkar, 2012). The case for reviving this pipeline has deteriorated significantly, which means that stakeholders in the U.S. oil industry need to rethink their decisions related to the industry’s logistics.
Trucks are also used to transport tons of petroleum products across the United States. Most shipments come from oil refineries in the country, as the focus is on supplying a large web of retail outlets. It has been indicated that trucks represent the most versatile form of logistics, as they do not rely on pipelines or railways (Allison & Mandler, 2018). Thus, trucks are considered a suitable transportation option for moving oil and refined products at short distances. On the other hand, it should be pointed out that trucks are not energy-efficient, thereby they are not usually considered for long-distance transportation of oil.
Furthermore, barges have been extensively used to transport small amounts of crude oil originating from the Gulf Coast and moving to Midwest oil refineries. Barges transported 244 million barrels of crude oil per day in 2014, which represented a significant increase from 46 million barrels of oil per day in 2010 (DiLallo, 2019). In this way, it appears that inland water transportation has become a relevant option to improve the logistics of the U.S. oil industry.
Crude oil and refined products mostly move by pipeline between the United States, Canada, and Mexico. While the United States imports crude oil from Canada, it exports refined products. There are 31 oil pipelines that cross the U.S.-Canadian border (U.S. Energy Information Administration, 2018). At the same time, there are additional pipelines which are used for the transportation of carbon dioxide and industrial chemicals. As of 2016, the United States utilized more than 90% of the pipeline crossing the U.S.-Canadian border to transport oil (Greenley, 2019).
Furthermore, the United States imports crude oil from Mexico by ship and rail. It is important to indicate that energy trade between the two countries has been determined by U.S. crude oil imports from Mexico and U.S. net exports of refined petroleum products to Mexico (U.S. Energy Information Administration, 2019). Until 2014, U.S. oil imports from Mexico represented the most essential aspect of the bilateral energy trade between the respective countries. Yet the U.S. oil imports from Mexico remained quite low at $15.8 billion in 2018.
In relation to Saudi Arabia, which is the third source of oil imports for the United States, it can be stated that Saudi oil represented approximately nine percent of U.S. oil imports in 2018. Since the United States imported around 328 million barrels of oil from Saudi Arabia in the same year, it has been concluded that U.S. oil imports reached quite low volumes (Bomey, 2019). As it started relying on its domestic oil production, the United States has been in a relatively competitive position compared to Saudi Arabia in the global oil market. In this context, it should be noted that the United States also imports oil from Iraq.
According to the U.S. Department of Energy, the United States currently has over 644 million barrels of crude oil which are stored in underground salt caverns. The latter are found in Texas and Louisiana. The U.S. company is a master limited partnership (MLP) Phillips 66 Partners. This company emphasized the crucial role of developing its $2.7 billion Gray Oak Pipeline (DiLallo, 2019). The ambitious company has set the strategic goal of transporting over 900,000 barrels daily from the Permian Basin to the Gulf Coast. From the point of the Gulf Coast, oil is moved to various export terminals, especially South Texas Gateway. Even though the mentioned gateway is not fully operational, Phillips 66 Partners aim at optimizing the capacity of its pipeline which will affect the entire U.S. oil market.
Another leading U.S. energy company is a midstream MLP Enterprise Products Partners. This company operates two pipelines that transport oil from the Permian Basin to the Gulf Coast, amounting to approximately 820,000 barrels per day (DiLallo, 2019). At the same time, the respective company considers certain opportunities for further expansion, which means that an additional pipeline will increase the oil shipments in the respective region. Enterprise Products Partners is also in the process of developing the Sea Port Oil Terminal (SPOT), which is represented as an offshore export facility. The SPOT initiative will be completed with the collaboration of the oil giant Chevron. In this way, the oil pipelines will be improved significantly in terms of flexibility.
Another investor in the Gray Oak Pipeline and South Texas Getaway is Marathon Petroleum. Investing in export-related infrastructure is an important strategic objective of this energy company, since similar prospects are in line with the overall U.S. oil production (DiLallo, 2019). Extensive investments in this field can result in substantial earnings growth for the mentioned energy companies in the United States.
Implications of the U.S. Oil Industry
The United States has a substantial amount of reserves of different natural resources. The outlook for oil production in the country has changed from so-called scarcity to oil abundance (U.S. Energy Information Administration, 2019). The process of measuring U.S. oil supply is determined by specific factors, particularly technology costs involved, various technological advancements and local and global oil prices.
In 2017, the United States had approximately 40 billion barrels of proved oil reserves. In 2019, the United States exported approximately 89,000 barrels per day more crude oil and petroleum products than it imported. It has been observed that the extensive crude oil production in the country, which increased from 5.3 million barrels per day in 2009 to 12.1 million barrels per day in 2019, has led to decreased U.S. crude oil imports (Greenley, 2019). Such a decrease can be also explained with the decreased number of sources the country imported oil from.
In 2015, the United States removed specific limitations on exporting domestically produced oil. Since that period, U.S. crude oil exports have become the most significant contributor to petroleum export growth in the country (Allison & Mandler, 2018). At the same time, it should be noted that, irrespective of the significant U.S. crude oil exports, the United States is considered a net importer of crude oil. A substantial amount of U.S. crude oil imports (over 60%) are sourced from Canada and Mexico.
It is relevant to note that oil trading patterns tend to change as a result of prevailing market conditions. Yet most of the oil that organizations import to the United States is sourced from the same countries. Most types of crude oil are interchangeable to some extent, which enhances the integrity of the global oil market (Greenley, 2019). At the same time, these types of crude oil have distinct characteristics that should be thoroughly explored to understand the functioning of the U.S. oil industry. Refineries are focused on optimizing their operations for specific grades of crude oil (Bomey, 2019). In addition, oil trade patterns are affected by the factors of infrastructure and trading relationships.
The demand for crude oil products is closely associated with the country’s economic conditions. It is clear that consumers use petroleum products to meet their daily needs, particularly driving. Economy has emerged as an important driver of the consumption of petroleum products. At the same time, it is essential to consider specific policy implications pertaining to the U.S. oil industry (U.S. Energy Information Administration, 2019). As part of the overall goal to improve vehicle fleet efficiency, new fuel economy standards were enforced by the National Highway Traffic Safety Administration.
Since the 1970s, the U.S. oil sector has gone through numerous changes. Petroleum product imports reached all-time high volumes in 2005, estimated at 13 million barrels per day. However, this number decreased to 10 million barrels per day in 2017 (Greenley, 2019). With passing the Consolidated Appropriations Act in 2016, Congress removed all restrictions related to crude oil exports in the United States. This period was marked by continuously increasing oil prices and assumed resource scarcity.
Oil imports from Canada have increased significantly since the 1980s. In 2017, the United States imported approximately 4 million barrels per day from Canada. This amount of oil imports accounts to almost 40% of all U.S. imports of oil and petroleum products (Greenley, 2019). Yet it should be noted that in case oil imports continue to increase, specific infrastructure demands will emerge in the U.S. oil industry. Since there are pipeline limitations to the Gulf of Mexico, most crude oil coming from Canada is distributed in the Midwest.
The Effect of Oil Imports on the Economy
As noted, the United States is a net importer of oil, which has specific economic implications. The reason why the country imports a substantial amount of petroleum products is that they would be quite costly to consumers and organizations if those products were produced domestically (U.S. Energy Information Administration, 2018). Nevertheless, it is important to be aware of the potential negative effect on the economy, especially if such dependence on oil imports results in trade deficits in the long term. Oil import dependence can also have negative economic effects, particularly when oil prices tend to increase. An increased price of crude oil automatically implies higher prices for petroleum products, respectively gasoline. Since gasoline prices are among the most visible prices for consumers, the negative economic impact is immediate (Bomey, 2019). In the case of imported oil, money is sent to other countries, which means that only a specific portion is returned through the purchase of more U.S. oil products.
Increasing oil prices have led to increased oil import costs, even though the volume of oil imports may decrease. Yet understanding the increase in oil prices may be challenging if this issue is considered solely from the perspective of the United States (Greenley, 2019). U.S. domestic oil production has increased, while oil consumption in the country has reduced. In order to ensure a better understanding of similar changes, considering certain implications of the global oil market is necessary.
The global integration of crude oil and petroleum products is one of the essential features of the global oil industry. It has been illustrated that over 60% of global oil supply is traded at the international level. This means that global oil prices move together, which suggests a high level of interdependence (Allison & Mandler, 2018). As a result, oil prices are affected in different parts of the world. Even though developments in this context have been prevailing in the United States, global oil competition remains quite high. It is expected to increase in the future considering the demand from emerging market countries. However, the concerns over potential limits of global oil supply should be adequately recognized.
The concerns about the supply and demand of oil have resulted from recent developments in the global oil market. As a result of the persistently increasing global oil demand among emerging market countries, global oil supply was unable to keep up with such demand at previously low prices (Greenley, 2019). Therefore, global oil prices started increasing at a rapid rate. At the same time, it has been argued that the global oil industry has shifted to more complex resources in order to address such increasing demand.
In 2011, the high oil prices were explained with the political conflicts in different parts of the Middle East, particularly Egypt and Libya. Moreover, the tensions with Iran resulted in supply disruptions to specific sources of oil production. As a result of these tensions, the United States imported less oil from Libya and no oil from Iran (Greenley, 2019). In order to explain the persistently increasing oil prices, it should be noted that purchasing oil from these sources (Libya and Iran) implies finding alternative sources in case of supply disruptions.
Recent Developments in the U.S. Oil Industry
The region of west Texas has remained quite efficient in terms of oil production, considering the generation of approximately 3.9 million barrels on a daily basis in 2019 (Worland, 2019). This represents one third of the total oil production in the United States. Such substantial oil production implies that the United States has become the largest producer of crude oil in the world. In this way, the country’s oil dynamics has shifted from being dependent on foreign oil to maintaining the status of an oil net exporter in recent years. Experts in the field present their positive forecasts that the U.S. oil industry will continue its progressive expansion in the future. An interesting aspect discussed by energy analysts is that the U.S. oil production may equal that of Saudi Arabia and Russia by 2025 (Worland, 2019).
It appears that the oil boom in west Texas has changed the U.S. economy. Different economic trends have been re-evaluated to determine the current economic balance in the country. By rethinking the status of the U.S. economy, it has been concluded that the United States’ decreased reliance on Saudi oil has resulted in refocused U.S. efforts in different areas (Bomey, 2019). The substantial U.S. oil reserves have been strategically used to impose strict sanctions against Iran and Venezuela.
The recent developments in the U.S. oil industry, represented by the oil boom in west Texas, imply emerging challenges as well. Energy markets are rather complex, considering the implications of national security priorities. In fact, energy markets and national security are interrelated, implying that such oil boom in the United States may undermine the country’s efforts to establish a high level of energy independence (Worland, 2019). In other words, similar developments threaten international partnerships, as the United States may become quite vulnerable to trade retaliation. As a result, there are different geopolitical prospects that should be considered in the context of the recent U.S. oil boom.
Previous oil booms in the United States have negatively impacted the entire region. However, local energy experts claim that the situation with the recent developments in the U.S. oil industry is different from before. At present, energy companies in the United States have relied on the limitless possibilities of technological advancements that turned the oil extraction process into a cost-effective option (Greenley, 2019). Certain areas for extracting crude oil were previously inaccessible, but with the introduction of various technologies, the situation has changed significantly.
Irrespective of the current oil boom in west Texas, there are certain challenges that should be taken into consideration. One such challenge is described as persistent infrastructure problems in the sense of handling the substantial amount of oil reserves (Bomey, 2019). In this way, drillers may encounter a situation where valuable natural resources are burned off, rather than being captured and utilized accordingly.
Another challenge associated with the oil boom in west Texas is described as a negative impact on the environment. The new pipelines and expansions of the U.S. oil supply chain have inevitably resulted in significant pressures for the environment from the perspective of climate change (Worland, 2019). In this context, the dangers associated with leaks from wells should be considered while trying to find solutions to the problem.
The substantial increase in U.S. oil production has obviously impacted the U.S. economy. As a result of domestic energy production, the price of oil has remained low. The process of domestic energy production helped other sectors of the U.S. economy, particularly the air industry and agricultural sector (Worland, 2019). Nonetheless, a more accurate analysis of this new economic reality requires some complex scenarios. Extensive oil production in the United States can become a pillar of the economy, but this is applicable to a situation when the price of oil is low.
Another recent development in the U.S. oil industry is associated with the sanctions the United States imposed on Venezuela. The sanctions from 2017 were extended in 2019 to include specific updates on the individuals that have acted on the behalf of Venezuela’s government. Under these new regulations and sanctions, U.S. consumers were allowed to purchase crude oil from Venezuela until April 2019 (Greenley, 2019). However, it was made clear that the payments for such purchases were kept in blocked accounts.
It should be indicated that a massive prohibition on U.S. crude oil imports from Venezuela could reflect negatively in the global oil industry. This would automatically mean constraints in the global oil supply chain, which would eventually lead to high oil prices encountered by Gulf Coast refineries in the United States (DiLallo, 2019). Nevertheless, it should be noted that a similar shock may have short-term consequences. This is because the global oil market would be expected to find alternative energy sources, rather than remain in a stagnant and unfavorable position.
In light of the recent developments in the U.S. oil industry, it is important to consider how the protection of particular trade routes can affect the U.S. oil imports in the long term. From the perspective of such ongoing protection, physical threats to oil supply should not be disregarded. Internationally, a crucial waterway for the transport of oil and natural gas is the Strait of Hormuz located in the Persian Gulf (Greenley, 2019). This passage represents access to the open ocean, and it is important to note that it is surrounded by top oil-producing countries in the world.
In securing oil trade routes, exploring the relationships of the United States with Saudi Arabia, Iran, and members of OPEC can provide relevant insights about the future status of U.S. oil imports. This means that specific security implications emerge around main oil trade routes globally. Potential disruptions in the global oil market would reflect negatively upon the U.S. oil industry as well (Worland, 2019). Avoiding supply shocks in the international oil market will not put pressure on oil prices in the United States. As a result, the U.S. oil imports will not be affected substantially, even though the country has placed importance on increasing its energy independence in recent years.
Increased U.S. Oil Production, U.S. Oil Imports, and Foreign Policy Implications
From the perspective of national security, it appears that the United States has focused on addressing its previous oil dependency through the development of different energy sources. As noted, the United States is a net oil exporter at present, but this does not mean that the country has a proper sense of security pertaining to its oil reserves and foreign policy. It has been illustrated that the United States has found it problematic that it cannot process much of the oil it produces (Bomey, 2019). The reason is that most refineries are designed in such a way that prevents them from working with U.S. crude oil resources. It appears that U.S. crude oil is lighter compared to the oil imported from Canada and Venezuela. In other words, the United States will continue to import oil despite the recent oil boom in west Texas followed by increased oil production.
For many years, the U.S. foreign policy has been centered around improving the country’s access to imported oil. Therefore, the United States has been engaged in developing and maintaining positive relations with oil-rich countries such as Saudi Arabia. In this context, the United States needed to use its military force on numerous occasions to ensure sufficient stability in oil-rich countries in the Middle East (Greenley, 2019). Under the presidency of Donald Trump, the United States has clearly expressed its goal to improve its relations with countries that import oil. Therefore, there are prevailing uncertainties regarding the possible effects of the increased U.S. oil production on U.S. foreign policy. The use of oil policy as a foreign policy tool is a common practice in the United States (Worland, 2019). The executive branch of the government usually places strict sanctions on crude oil, especially in relation to Iran.
Moreover, it is important to take into consideration various international policy measures when it comes to the regulation of oil production in the United States and globally. Individual countries or specific events can affect certain trends in the global oil industry. The Organization of the Petroleum Exporting Countries (OPEC) tends to play a crucial role in this context (Greenley, 2019). This is because OPEC produces approximately 40% of the world’s crude oil. In 2016, OPEC made the decision to decrease the supply of oil in the global oil market as a result of extremely low prices.
It is important to address the growing influence of OPEC’s market. This implies a high level of coordination to adjust the global supply of oil, which apparently has an effect on the price of oil. From this perspective, it is vital to understand the United States’ relationship with OPEC (Greenley, 2019). By passing numerous bills, the U.S. Congress demonstrated its proactive attitude toward pursuing oil cartels with all of the power of the law. The United States has been enabled to sue for collusion.
In understanding the influence of OPEC’s market, it should be noted that having low prices is not the optimal solution pursued by all U.S. stakeholders in the oil supply chain. While refineries would expect low oil prices, considering their purchase of crude oil, U.S. oil producers may think that the process of extracting of crude oil is economically disadvantageous below a specific price (Bomey, 2019). Such conflicting stakeholder interests obviously impact U.S. government policies on oil imports and exports.
Future of Oil in the United States
While the United States has recently emphasized its dominant role as a net oil exporter, at the same time, it has been argued that the country still relies on its oil imports to maintain a sufficient balance in its oil market due to the distinct dimensions and demands emerging in the respective industry (Greenley, 2019). It has been pointed out that pipelines remained as a major transportation tool to move oil from one region to another (DiLallo, 2019). In line with this discussion, the implications of the U.S. oil industry indicated the need to reassess the strategic capacity of the sector in the sense of understanding U.S. oil exports and imports from a broader perspective.
U.S. oil imports have always resulted in certain fluctuations in the prices of oil, but the United States has repeatedly claimed its new status of being a net oil exporter (Worland, 2019). Therefore, the increased U.S. oil production has significant foreign policy implications that should be adequately taken into consideration. In conclusion, the U.S. oil industry is at a dynamic stage of developing considering the changes in U.S. oil exports and imports.
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