President Vladimir Putin’s Russia is a large exporter of oil to the world, but not the United … [+] States.
Some members of the U.S. Congress suggested Thursday that the United States ban oil imports from Russia in an attempt to blunt President Vladimir Putin’s ruthless and deadly assault on Ukraine.
Problem is, only 3.5% of of U.S. imported oil came from Russia in 2021. That, by the way, is the greatest percentage in at least two decades.
As I wrote previously, when it comes to Russia, gasoline — and not oil — is the issue. The United States received more of its imported gasoline from Russia in 2021 than from any other country, at 21%
As a percentage of U.S. oil imports, Russia’s total is higher than it has been in at least two … [+] decades. But at 3.5%, it remains a drop in the barrel.
Oil is a different story. Fifty-seven percent of U.S. oil imports in 2021 came from Canada, according to U.S. Census Bureau data I examined. That’s $75.95 billion from Canada, a mere $4.71 billion from Russia. Throw in Mexico, and almost two-thirds of all U.S. imported oil comes from a neighbor.
When it comes to oil imports, the 3.5% attributed to Russia in 2021 might have been the highest percentage from there in at least two decades, but it wasn’t the most by value. It was only the fifth highest total since 2008, the record year for U.S. oil imports by value.
How is that possible? U.S. hydraulic fracturing helps explain.
Looking at oil imports from the world in just the month of December 2021, the most recent data … [+] available, compared to the same month going back to 2013, you can see the precipitous decline as fracking took hold.
Since 2008, the value of U.S. oil imports has fallen a stunning 62.36%, thanks to an enormous increase in domestic production brought on by fracking, which also, until now, kept prices in check. In dollar terms, U.S. oil imports have fallen $220.48 billion since the record year of 2008.
As fracking took hold, the United States did something else. It ended what was essentially a four-decade-long ban on oil exports, dating back to the Arab Oil Embargo of 1973.
While U.S. oil imports from the world have fallen sharply, exports have risen at a far faster clip, … [+] as the above chart of the month of December, compared to previous Decembers, reveals.
While oil imports decreased 62.36%, oil exports increased almost 3,000%.
Illustrative of that is the Port of Houston shipping channel, which went from having a large trade deficit — imports greater than exports — to having the nation’s largest trade surplus among more than 450 airports, seaports and border crossings.
So, yes, Russia is now accounting for a greater percentage of U.S. oil imports than it has since at least 2003, the oldest data to which I have access. In part, that’s because the United States no longer imports oil from Venezuela or Syria while imports fell sharply from Saudi Arabia, Nigeria, Angola, Algeria and Mexico and Russia, among others.
Oil imports from Russia in 2021, at $4.71 billion, is a 45% decline from a decade ago.
If there’s a silver lining in any of this, and with the shelling of Ukraine streamed into our homes nightly, it’s hard to find any reason for optimism, it’s that the United States is no longer nearly as beholden to competitors or enemies for imported oil.
Here’s some numbers to show you what I mean:
In 2003, oil exports were worth 0.16% of the value of oil imports. In other words, a pittance. In 2021, that percentage was 52.12%, the third consecutive year above 50%.