Let's be Clear: The US is Producing More Oil Than Ever

I have heard WAY too many people make erroneous statements about how dependent or independent the US is on foreign oil. So let's be extremely clear: the US is producing more crude oil than it ever has in its history, dating back to the 1920s. The US is importing less crude oil than ever. We are less dependent than we have ever been. We are, in fact, a net exporter of crude oil and products. And PLEASE don't try to make this about democrats vs republicans. It isn't political. I'm not a political analyst and I have no axe to grind. Democrats have not ruined the industry and Republicans haven't helped it in any meaningful way.

It's the oil industry doing what it does: producing oil if it is economically viable to do so. We had the largest growth in oil production in the history of the US starting in 2008 through 2020, most of which time there was a Democrat in the White House. The oil industry developed new ways to extract oil (horizontal drilling and fractionation). It's not due to policies or subsidies or political ideologies. It's ingenuity and technology and capitalism. Also please note that less than 10% of US land drilling occurs on Federal lands. So when politicians say they want to restrict drilling on Federal leases, the oil companies just drill more on private lands and State lands. Those kind of policies and statements are meaningful, but not as much as people want to believe. It's a red herring: politicians on both sides pandering to their bases.

Again: we are making more oil than ever (taking out COVID impact), and importing less than ever. In fact, we are a NET exporter of petroleum products. "WHAT?" you say? Yes, because although we may import a couple millions barrels of crude oil, we export about 4 million of products we refine from the crude. Because we have refineries that can do it. So we are a net exporter of petroleum, and that has been a huge boon to our economy and massively helping our trade balance.

Just look at the data compiled every year by the US Energy Information Administration. Here is production of crude oil back to 1920 (link included for raw data):

EIA Data: US Field Production of Crude Oil

And here you see our Net Imports of Crude oil and products. This represents anything we import minus anything we export. In 2018, we became a net exporter for the first time in history, and we continue to improve.  The biggest improvement came from 2006 through 2018.

EIA data: Net Imports of Crude Oil and Products

Meanwhile, our consumption stays pretty flat. Even with a growing economy and more cars, we have. Here is data from the 2022 BP Statistical Review of World Energy, which does not take into account the net exports of products. But you see that we are now energy independent compared to any time in modern history. Consumption of about 18 million barrels per day still makes us the largest consumer of crude oil. But we are also now the largest producer, far surpassing Saudi Arabia.  Thank the many small and independent oil companies, not "big oil" and certainly not the politicians.

So, next time someone comments about the US becoming more dependent on foreign oil, point them to this page. And don't let people get way with "I heard we now are more dependent than ever". I've heard that statement and it is patently ridiculous. Be informed, and be well, my friends!