Our sense is that most Americans still believe the U.S. imports a large part of its crude oil consumption and that the majority comes from the Middle East. After all, isn’t that why the U.S. Fifth Fleet is amassing massive firepower in and around the Persian Gulf?
Wrong! Check out the charts from the E.I.A..
The U.S imports about one half of the crude it consumes, the majority of which comes from the Western Hemisphere, mostly Canada and Mexico. America’s second largest supplier is Saudi Arabia, however, which provides around 15-20 percent of imports. And, of course, any disruption of Gulf oil would drive the world price of crude through the roof and shred the global economy.
The data will still be a surprise to many. We’ll follow up later in the week.
(click here if charts are not observable)