NEW YORK (AP) - For the first time, the main export of the United States, the world's largest consumer of gas, is - wait for it - Fuel.
Measured in dollars, the country is on track this year to send more gasoline, diesel and jet fuel than any other single export, according to U.S. Census data dating back to 1990. Also be the first in 60 years America has been a net exporter of these fuels.
How big a change is this? A decade ago, fuel was not even among the top 25 exports. And for the past five years, the main export was U.S. aircraft.
The trend is important because for decades the U.S. is based on huge imports of fuel from Europe to meet demand. Only re inforced the image of America as an energy hog. And until a few years ago, when gasoline prices rose, there were complaints in Congress that U.S. refineries were not growing fast enough to meet domestic demand, the controversy seems to have ended.
However, the U.S. is not close to energy independence. The United States remains the largest importer of crude. From January to October, the country imported 2.7 billion barrels of oil worth about $ 280 billion.
Exports of fuels, with an estimated value of $ 88 billion in 2011, have soared for two reasons:
- Crude oil, the raw material they are made of gasoline and other refined products, is much more expensive. Oil prices averaged $ 95 per barrel in 2011, while gasoline averaged 3.52 dollars per gallon - a record. A decade ago, oil averaged $ 26 per barrel, while gasoline averaged 1.44 dollars per gallon.
- The volume of exports of fuels is increasing. The U.S. is using less fuel due to the weak economy and more efficient cars and trucks. It allows refineries to sell fuel to the rapidly growing economies in Latin America, for example. In 2011, U.S. refineries exported 117 million gallons per day of gasoline, diesel, jet fuel and other petroleum products, up from 40 million gallons per day in the previous decade.
There are atleast an internal problem with the increasing role of the United States as an exporter of fuel. Experts say the trend helps explain why the U.S. automobile is paying more for gasoline. The more fuel that is sent abroad, less than a cushion of supply is not at home.
Gasoline supplies are being exported to the highest bidder, says Tom Kloza, chief oil analyst at the Office of Petroleum Price Information. "It's a global market," he says.
Refining companies will not say how much they earn from selling fuel abroad. But analysts say sales could generate more profit per gallon than it would have generated in the U.S. Otherwise, would not occur.
The value of U.S. exports of fuels has grown steadily over the last decade, coinciding with oil prices and growing demand worldwide.
Developing countries in Latin America and Asia have been burning more gasoline and diesel as people buy more cars and build more roads and factories. Europe has also been buying more U.S. fuel to compensate for their lack of refineries.
And there's a simple reason why the U.S. refineries have been willing to export to these markets, demand for gasoline in the U.S.has been declining every year since 2007. It fell another 2.5 percent in 2011. With the struggling economy, drivers reduce their consumption. In addition, cars and trucks have become more fuel efficient and government mandates the use of more fuel corn-based ethanol.
The last time the U.S. was a net exporter of oil was 1949, when Harry Truman was president. That year, the U.S. 86 million barrels exported and imported 82 million barrels. In the first ten months of 2011, the country exported 848 million barrels (worth $ 73.4 billion) and imported 750 million barrels.
Measured in dollars, the country is on track this year to send more gasoline, diesel and jet fuel than any other single export, according to U.S. Census data dating back to 1990. Also be the first in 60 years America has been a net exporter of these fuels.
How big a change is this? A decade ago, fuel was not even among the top 25 exports. And for the past five years, the main export was U.S. aircraft.
The trend is important because for decades the U.S. is based on huge imports of fuel from Europe to meet demand. Only re inforced the image of America as an energy hog. And until a few years ago, when gasoline prices rose, there were complaints in Congress that U.S. refineries were not growing fast enough to meet domestic demand, the controversy seems to have ended.
However, the U.S. is not close to energy independence. The United States remains the largest importer of crude. From January to October, the country imported 2.7 billion barrels of oil worth about $ 280 billion.
Exports of fuels, with an estimated value of $ 88 billion in 2011, have soared for two reasons:
- Crude oil, the raw material they are made of gasoline and other refined products, is much more expensive. Oil prices averaged $ 95 per barrel in 2011, while gasoline averaged 3.52 dollars per gallon - a record. A decade ago, oil averaged $ 26 per barrel, while gasoline averaged 1.44 dollars per gallon.
- The volume of exports of fuels is increasing. The U.S. is using less fuel due to the weak economy and more efficient cars and trucks. It allows refineries to sell fuel to the rapidly growing economies in Latin America, for example. In 2011, U.S. refineries exported 117 million gallons per day of gasoline, diesel, jet fuel and other petroleum products, up from 40 million gallons per day in the previous decade.
There are atleast an internal problem with the increasing role of the United States as an exporter of fuel. Experts say the trend helps explain why the U.S. automobile is paying more for gasoline. The more fuel that is sent abroad, less than a cushion of supply is not at home.
Gasoline supplies are being exported to the highest bidder, says Tom Kloza, chief oil analyst at the Office of Petroleum Price Information. "It's a global market," he says.
Refining companies will not say how much they earn from selling fuel abroad. But analysts say sales could generate more profit per gallon than it would have generated in the U.S. Otherwise, would not occur.
The value of U.S. exports of fuels has grown steadily over the last decade, coinciding with oil prices and growing demand worldwide.
Developing countries in Latin America and Asia have been burning more gasoline and diesel as people buy more cars and build more roads and factories. Europe has also been buying more U.S. fuel to compensate for their lack of refineries.
And there's a simple reason why the U.S. refineries have been willing to export to these markets, demand for gasoline in the U.S.has been declining every year since 2007. It fell another 2.5 percent in 2011. With the struggling economy, drivers reduce their consumption. In addition, cars and trucks have become more fuel efficient and government mandates the use of more fuel corn-based ethanol.
The last time the U.S. was a net exporter of oil was 1949, when Harry Truman was president. That year, the U.S. 86 million barrels exported and imported 82 million barrels. In the first ten months of 2011, the country exported 848 million barrels (worth $ 73.4 billion) and imported 750 million barrels.
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