re: Global Supply Shock Exposes the Myth of Energy Independence

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But while the U.S. is a net petroleum exporter, it still needs to import heavier crude grades because refineries cannot run only on the lighter crudes from the domestic shale fields. Crude imports account for about three-quarters of U.S. total gross petroleum imports, according to data from the Energy Information Administration (EIA). Nearly 70% of all U.S. refining capacity runs most efficiently with heavier crude. That is why 90% of crude oil imports into the United States are heavier than U.S.-produced shale crude, the American Fuel & Petrochemical Manufacturers (AFPM) trade association says.

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Question for an oil expert: If most of our oil pulled from the ground is light crude, why are our refineries set up to process heavy crude?

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why are our refineries set up to process heavy crude?

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Unprecedented, huh?

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Actually, yes. We’ve never seen this kind of oil disruption out of the Middle East, not even with the first gulf war. The ONLY reason the price hasn’t already hit $180 is because of the fracking revolution in the US.

Simply that we are in a better position with domestic production than at any time in our history.
And certainly well-postioned to tolerate exrensl market forces.

In other words, this turmoil won't be nearly as big of "crisis" as some are suggesting.

I think 145 is possible. That price probably tanks the economy and a recession hits before getting too far beyond.

The longterm effects are much more cloudy. And even hormuz opening now the world has lost a month of crude movements through the straight. Over half a billion of crude not to mention refined products.

Better ger on board the trump train then

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So...yeah, for some of us, that article may be "Well....I already knew that." But it appears not everyone on here has viewed Energy Independence in the terms you and I may.

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Well the problem is you used the "shock and awe" title of "exposes myth" from the article and posted quotes from article without any explanation of your intent behind the article or the post.

Of course you have to go all the way to the bottom of the article to get a true explanation. I will give you credit for putting this text in bold.

A simple change of your title or explanation changes how the article and your post is received by others. A change in title or a simple explanation such as "Article to explain why we are experiencing high prices at the pump domestically despite Energy Independence" would likely be better received.

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while the U.S. is a net petroleum exporter, it still needs to import heavier crude grades

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Blame politicians over the years that have leveraged everything the US did away from the US, which is a HUGE national security problem.

There should have been a renaissance of lighter crude units and new plants built once fracking innovation started to really hit. There is no reason we should be in some of the positions we are in, but politicians sold the US to the highest bidder.

Same goes for manufacturing, ship building and a number of other verticals.

Because they were retooled for sour crude when we ran out of Peak Oil in the 1980's.

The resurgence of sweet crude was in 2010 when hydraulic fracturing gave us access to shale oil.

Here's Google AI input:

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4 Why U.S. oil refiners could be the big winners in Venezuela — even ... No, U.S. refineries were not always tooled for sour (high-sulfur) crude. While many are now "complex" refineries designed for heavy/sour crude, this was primarily a strategic shift, particularly during the 1980s and 1990s, to process cheaper, heavier foreign oil as domestic, lighter, and sweeter crude production declined. U.S. Energy Information Administration (EIA) (.gov) U.S. Energy Information Administration (EIA) (.gov) +2


Key Historical Context:

Initial Design: Historically, many U.S. refineries were equipped for lighter, sweeter crude. Major investment in upgrades (such as cokers and hydrocrackers) was made over the last few decades to process heavier, sourer feedstock from countries like Venezuela and Mexico.

The Shift:

The push to upgrade refineries to handle heavy/sour crude intensified in the 1980s and 1990s to take advantage of lower prices for these grades. Shale Boom Contradiction: The recent, dramatic increase in U.S. shale oil production has created a mismatch. The U.S. produces large volumes of light, sweet crude, but much of its refinery capacity is still geared toward heavy, sour oil.

Why They Didn't Revert:

Retrofitting refineries to switch back from heavy to light crudes is expensive and economically undesirable because heavy sour crude still offers higher margins for these specialized, high-conversion refineries.

American Fuel & Petrochemical Manufacturers American Fuel & Petrochemical Manufacturers +5 Roughly 70% of U.S. refining capacity, particularly on the Gulf Coast, is currently designed to process heavier, high-sulfur crudes.

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