How Dependent is the U.S. on Persian Gulf Oil?

With tensions heating up over Iran (recall our November 5th post, Is Iran About to Get Hot) we’re seeing lots of traffic on our post of last February,  U.S. Dependent on Middle East Oil? Think Again.

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)

This entry was posted in Black Swan Watch, Crude Oil and tagged , , , . Bookmark the permalink.

1 Response to How Dependent is the U.S. on Persian Gulf Oil?

  1. While that’s true, the oil market is so globalized that total supply and demand is more important than who buys from who at a given moment. As you point out “of course, any disruption of Gulf oil would drive the world price of crude through the roof and shred the global economy.” A decrease in supply from the Mideast or any other region would drive up prices for everyone, meaning you can be dependent on foreign suppliers without currently importing from them directly.

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