Ask yourself the question: Where does America get its oil? Assumptions about the Middle East persist, but the answer is actually very different today than it was decades ago. Canada is actually the US’s largest supplier, making up more than half of all the country’s petroleum imports at 4.42 million barrels per day. Other key sources include Mexico, Saudi Arabia, Iraq, and Brazil, though each brings in a much smaller share than Canada’s staggering 52%. Crude oil alone makes up about 76% of the total of our petroleum imports.
Despite being extremely reliant on foreign crude oil to make our gasoline in the past, the U.S. is now a net exporter of petroleum. That is, we send out more than we bring in. In 2023 alone, the US exported about 10.15 million barrels per day while only importing roughly 8.51 million. The top destinations for US exports include Mexico, China, the Netherlands, Canada, and Japan.
Domestic production has changed the landscape
The US has seen a lot more domestic production over the last few decades. That’s fundamentally changed the way oil flows in and out of the country’s economy. Most of the gasoline Americans use today is sourced from oil from Canada, Texas, and the Dakotas. Pipelines also carry a lot of crude across the continent, cutting down on the need for as many overseas shipments as in the past.
Of course, global events still influence prices. Crude oil prices tend to go up during geopolitical tensions, which typically cause supply disruptions and spur more bearish behavior from investors. Oil and gas rise at different rates, as well. This is true regardless of where the oil is being refined. It’s like the stock market, really: even if nothing changes about the product itself, scarcity or demand can both have a huge impact on its value.
