As the price of U.S. gasoline reaches $ 5 per gallon, higher oil prices from the United States also reduce domestic oil production, which has been low for many years. Decreased refinement capacity since the start of COVID, lower yields, and higher post-COVID demand, along with a $ 120 bad barrel, have pushed U.S. gas prices. are rising in recent months to a record $ 5 gallon average.
The White House is keen to lower fuel prices, a key issue for most Americans ahead of the mid-November election. The concussions of the Biden Administration range from the request for a Defense Production Act to strengthen refinement and production capacity, to restrictions on oil exports. President Joe Biden also raised the profile of the oil company, telling them in a letter sent this week to increase oil production and noted that “the higher profit margins are being diverted directly to households. America is not acceptable. “
Purifiers have increased sales of refined petroleum products this year, especially in Latin America, which is less fuel-efficient these days from Europe, which also struggles with its oil supply problems with penalties and oil restrictions. of Russia after Putin’s invasion of Ukraine.
Exports of petrol, diesel and jet fuel from the US Gulf Coast were up 32 percent in March, April and May compared with those three months of 2021, and up 11 percent compared to those pre-disaster months of 2019, data. from Kpler market intelligence firm quoted by The Wall Street Journal indicated.
As of June, maritime petrol and diesel shipping from the Gulf Coast has gone from being the highest level since at least 2016, according to the Vortexa oil refining company quoted by Bloomberg.
High oil exports have contributed to the creation of low-yield U.S. stocks, though this is not the main reason for the low-level production of many years.
U.S. motor vehicle fuel documents are less than 11 percent below the five-year average for this time of year, the EIA said in its latest weekly report. Distillate fuel products, including diesel, are less than an average of five years by 23 percent.
“As cleaners are now fully stabilized, something needs to be done,” BloombergNEF analyst Danny Adkins told Bloomberg. “We need a re-export of imported goods, or prices will go up equally for the big cost.”
President Biden criticized oil companies for transferring record profits to consumers and called for solutions to development problems in a letter to major oil companies and refineries.
The president also “opened up the efficient use of corporate government resources to increase productivity and lower costs at the pump, including emergency authorities such as the Security Production Act,” White House Secretary of State Karine Jean-Pierre said this week.
The White House is considering restrictions on the export of gasoline and diesel, and discussions about such a move have intensified in recent days, with skilled communications sources told Bloomberg this week.
However, a certain restriction on fuel exports could also lead to further global supply shortages, which in turn raise oil prices.
Restrictions on imports could also send a mixed message to US partners in a divided world, especially to European partners, who want to eliminate marine oil and Russian refined products over the course of months. eight when the EU officially bans Russian oil.
Besides, crude oil prices are the single largest determinant of U.S. petrol prices, accounting for more than 53 percent of the total price per liter. Moreover, bpd about one million U.S. purification powers has been permanently closed since the outbreak began, as cleaners have opted to close down losing services or relocate some of their biofuel production facilities. Effective U.S. cleaning efficiency was slightly above 18 million bpd by 2021, the lowest since 2015, according to EIA data.
By Tsvetana Paraskova for Oilprice.com
Some of the above information from Oilprice.com:
The Top Five Countries of U.S. Petroleum Resources by 2021 it was Canada, Mexico, Russia, Saudi Arabia and Colombia.
Who owns the most oil in the world?
How the availability of oil reserves affects profits. Venezuela has the largest number of oil reserves in the world with more than 300 billion barrels stored. See the article : The Special Committee on the Initiation Approves the Value of Call for the United States to Improve the System for Self-Determination Puerto Rico, Ultimate Independence | Conference and Prayer Articles. Saudi Arabia has the second largest oil spill in the world at 297.5 billion barrels.
Who owns the most oil in the world?
Who owns most of the oil fields?
Seven major oil companies have less than 10 percent of the total renewable storage space. Considering only the verified sources (1P), the study puts Saudi Arabia on top with 70 billion barrels, followed by Russia with 51 billion, Iran with 32 billion, The United States has 29 billion and Canada has 24 billion.
Who holds 80% of the world’s oil?
BP estimates show that there are more than 1.73 billion barrels of oil resources in the world. To see also : World Refugee Day 2022 – US State Department. About 80 percent of the world’s oil resources are located in the Organization of the Petroleum Exporting Countries (OPEC).
Who owns the world’s oil?
If we take a simple look at proven oil sources, the answer is clear: especially OPEC and Russia. According to BP, world authorities on this issue, this 16-nation federation has 1.35 billion barrels of certified oil sources, or about 80 percent of the world’s total. .
Can the US produce its own oil?
The U.S. certainly produces enough oil to meet its needs. According to the US Energy Information Administration (EIA), by 2020 the United States produced 18.4 million barrels of oil per day and consumed 18.12 million. Yet the same report reveals that the US imported 7.86 million barrels of oil a day last year.
How long could the US hold on to its oil? The rate drops again to 180 days until stocks last. However, if the president chooses to release it at 1 million barrels a day, the current stock (again from March 25 was 568.3 million barrels of oil) could last as long as make a year and a half without any other source. oil.
Why does the US not produce its own oil?
The reason why U.S. oil companies have not added simple production: They have decided to use their billions in profits to pay dividends to their CEOs and wealthy owners and have not yet decided to invest in new oil production.
How much of its own oil does the US produce?
Oil Production United States United States produces 14,837,640 barrels per day of oil (as of 2016) ranks 1st in the world. The United States generates annual revenue of 15.4% of its proven revenue (from 2016).
When did us stop exporting oil?
Beginning in the 1970’s, the export of crude oil was illegal without a permit; in 2013, the United States exported a small amount of oil, and only to Canada. The ban was lifted in 2015.
When did the US ban oil exports? Q: Why did the United States ban crude oil exports in 1975? In 1975, the United States government imposed restrictions on the export of crude oil to protect American consumers against price fluctuations in the world market.
Why did US oil production decline?
The decline in production is due to reduced drilling activity associated with lower oil prices by 2020. By January 2020, U.S. crude oil production. reached a peak of 12.8 million b / d.
Does the US still export oil?
By 2021, the United States exported about 8.63 million b / d of gasoline to 176 countries and 4 U.S. territories. Exports of 2.98 million crude oil b / d accounted for 35% of total U.S. gas exports by 2021.