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Re:Saudi stocks slump as minister warns of ‘painful’ measure... by arcticbull on Sunday May 03, 2020 @08:29PM (#23063130)
C'mon now, for years the largest source of foreign oil going into the US was from Canada. Even today, Canadian oil accounts for 40% of imports, with the KSA a distant 11% [1]. The whole energy independence as a form of security through reduced financing of questionable governments thing was a red herring, even if you're worried about the northern border.

Imports remain around 7 million barrels of oil per day, down from a high of 9. What's shot up is exports. Oil imports into the US haven't changed much.

The US continues to "need" to import just as much oil as they always have from the KSA. [2] Even Canada imports from the KSA, for a lot of reasons [3].

Keep in mind, too, the largest supply of oil in the world is under Venezuela, with 18% of the global supply.

[1] https://en.wikipedia.org/wiki/Petroleum_in_the_United_States

[2] https://en.wikipedia.org/wiki/Petroleum_in_the_United_States...

[3] https://nationalpost.com/news/canada/why-has-canada-spent-bi...

Re:Saudi stocks slump as minister warns of ‘painful’ measure... by ashtonkem on Monday May 04, 2020 @01:12AM (#23064772)
The Canada thing is a good point, I always forget how much of our imports come from our peaceful neighbors.

America continues to import KSA oil mostly because California won’t frack, which could be changed if necessary.

As far as continuing to import, I believe that’s a factor of oil and refinery quality. America has some amazing refineries capable of eating garbage quality oil, including diluted tar. Since fracking produces high quality oil, my suspicion is that it’s cheaper to export that to older refineries, and import lower quality crude to refine domestically. But I’m no expert here.

Re:Saudi stocks slump as minister warns of ‘painful’ measure... by arcticbull on Monday May 04, 2020 @03:33AM (#23065440)
The article about why Canada imports oil is interesting. Some of the Maritimes are cut off from pipelines, and aren't set up to refine bitumen. It's actually just cheaper to buy KSA oil than solve these problems. I wonder if this is true in the US since I was under the impression West Texas Intermediate was pretty comparable to Arab Light. I'd love to learn more about the specifics here.
Re:Saudi stocks slump as minister warns of ‘painful’ measure... by ashtonkem on Monday May 04, 2020 @08:14AM (#23067024)
IIRC many American refineries were retooled at great cost to eat both Canadian and South American oil, which is lower quality than the Arab stuff; nobody expected that fracking would suddenly produce a glut of really high quality oil.

Also, good quality oil can be used to dilute thicker oils to the point where refineries can process them. It’s my understanding that this is how you process Venezuelan oil for example. It wouldn’t surprise me to find out that American oil is being exported to blend other stuff before refining.