US media: Trump says the US no longer needs Middle East oil or is not true
Trump said on the 8th that since he came to power, the United States has reached energy self-sufficiency and no longer needs Middle East oil.
Thanks to the surge in shale oil production, the United States in 2019 will reduce oil exports from the Persian Gulf to their lowest level in 30 years. However, Middle East crude oil still accounts for more than 10% of US imports. As the United States' energy growth engine, the West Texas Basin, sets a new record in oil production, the declining trend of US crude oil in the Middle East will not reverse.
Prior to what American Petroleum called the "shale oil revolution," refineries along the Gulf Coast invested millions of dollars to process relatively cheap heavy oil in the Middle East and Latin America. Compared to oil supplied from the Persian Gulf, shale oil is lighter and has lower sulfur content, which is not ideal for most US refineries.
Since the United States imposed sanctions on Venezuela's oil, declines in Mexican production, and logistical bottlenecks in Canadian crude oil delivery, sources of heavy oil supply have been restricted.
Because sanctions have been imposed on Iran, U.S. heavy oil buyers still rely on other Persian Gulf oil-producing countries.
According to a report from CNN, the United States is now the world's largest oil producer. Since 2011, U.S. oil production has doubled to nearly 13 million barrels per day and now exports 3 million barrels per day.
However, the United States still relies on the Middle East—especially Saudi Arabia. "We are not isolated, and shale oil is not Superman," said Helima Croft, global head of commodities strategy at RBC Capital Markets.
According to reports, most of the foreign oil imported by the United States comes from Canada and Mexico, while Saudi Arabia and Iraq are the third and fourth largest foreign oil sources for the United States. In the first 10 months of 2019, the United States imported an average of 906,000 barrels of oil per day from the Persian Gulf, compared with 1.5 million barrels in 2018.
"American products have changed the rules of the game. We should not ignore this." Croft said. "However, the idea that if we face large-scale and long-term supply cuts in the Middle East without major economic impact is inaccurate."