U.S. is using less imported oil By STEVE EVERLY The Kansas City Star
A jump in U.S. oil production and lower demand for petroleum products this year have led to a sharp reduction in the amount of imported oil the country is consuming.
U.S. oil production is set to have its biggest annual jump in four decades, according to an analysis by Platts, a provider of information on energy and commodities. That and weak demand have sent net imports down sharply.
For example, in the last three months of 2008, imports were never less than 10.5 million barrels per day, and since Oct. 1 of this year imports have never been higher than 10.1 million and have been as low as 8.84 million barrels per day, according to the Energy Information Administration. Demand for petroleum products for the year is down 4.5 percent.
Domestic oil production this year has jumped 6.4 percent, the biggest rise since 1970. U.S. oil production increased to an average of 5.3 million barrels per day, which is the largest amount produced since 2004, according to Platts. The U.S. is likely to keep oil production in the range of 5 million to 6 million barrels per day for the next decade, Platts said.
That growth in oil production is being credited to the development of new oil fields in the Gulf of Mexico and, to a lesser extent, a rising amount of oil from the Bakken shale area that is being tapped in North Dakota.
Those fundamentals — together with U.S. oil stockpiles at their highest levels in at least a decade — have led to calls for reining in speculation, which some believe is behind much of the volatility in oil prices this year. Crude oil, which was $46.34 a barrel at the beginning of the year, closed Friday at $76.05 a barrel on the New York Mercantile Exchange.
“There’s no reason in the fundamentals for the price of oil being this high,” said James Williams, an analyst for WTRG Economics, which tracks energy markets
US do not have a solution to oil imports. economy slows down, they use less. when things pick up again they will likely import as much or more then they have been. oil price is high partly due to country like china and india, USD is shrinking in value also goldman sachs is pumping oil to keep it high.
if oil price stay around 80 dollars a barrel in the next few months Dubai will have no trouble making their payments on their loans