Shrinking US oil imports
The US oil market is changing. Rising oil production brought about by the use of hydraulic fracturing to extract liquids from shale and other tight rock formations, and a sizable drop in oil consumption, have contributed to a sharp contraction in US dependence on oil imports to meet its needs.
In 2005 net imports of oil accounted for 60% of US oil demand, but this had fallen to around 36% in the first half of 2013. Also, in 2011 the US became a net exporter of oil products.
This new report from The EIU examines US oil supply and demand trends over the past five years, and discusses the implications for the US and the global oil market.
As the world's largest oil consumer, the US will remain a net oil importer, although at vastly reduced volumes when compared to the previous decade.
OPEC exporters will scramble to supply growing demand for oil in resource-deficient Asian economies, while the US's reduced import needs will increasingly be met by suppliers closer to home.
US-Middle East direct energy trade will ease. But the US is unlikely to see the Middle East region as a fundamentally less important one strategically, as its contribution to global energy supply will remain significant.
To learn more about the dynamics impacting the US oil market and the outlook for US oil demand and supply over the next five years, download the report for free below (registration required).