US Just Became Net Oil Exporter for First Time in 75 Years

By Bloomberg – Re-Blogged From Newsmax

America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal — even if likely brief — moment toward what U.S. President Donald Trump has branded as ‘energy independence.’

The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.

While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time.

“We are becoming the dominant energy power in the world,” said Michael Lynch, president of Strategic Energy & Economic Research. “But, because the change is gradual over time, I don’t think it’s going to cause a huge revolution, but you do have to think that OPEC is going to have to take that into account when they think about cutting.”

The shale revolution has transformed oil wildcatters into billionaires and the U.S. into the world’s largest petroleum producer, surpassing Russia and Saudi Arabia. The power of OPEC has been diminished, undercutting one of the major geopolitical forces of the last half century. The cartel and its allies are meeting in Vienna this week, trying to make a tough choice to cut output and support prices, risking the loss of more market share to the U.S.

The U.S. sold overseas last week a net 211,000 barrels a day of crude and refined products such as gasoline and diesel, compared to net imports of about 3 million barrels a day on average so far in 2018, and an annual peak of more than 12 million barrels a day in 2005, according to the U.S. Energy Information Administration.

The EIA said the U.S. has been a net oil importer in weekly data going back to 1991 and monthly data starting in 1973. Oil historians that have compiled even older annual data using statistics from the American Petroleum Institute said the country has been a net oil importer since 1949, when Harry Truman was at the White House.

On paper, the shift to net oil imports means that the U.S. is today energy independent, achieving a rhetorical aspiration for generations of American politicians, from Jimmy Carter to George W. Bush. Yet, it’s a paper tiger achievement: In reality, the U.S. remains exposed to global energy prices, still affected by the old geopolitics of the Middle East.

U.S. crude exports are poised to rise even further, with new pipelines from the Permian in the works and at least nine terminals planned that will be capable of loading supertankers. The only facility currently able to load the largest ships, the Louisiana Offshore Oil Port, is on pace to load more oil in December than it has in any other month.

The massive Permian may be even bigger than previously thought. The Delaware Basin, the less drilled part of the field, holds more than twice the amount of crude as its sister, the Midland Basin, the U.S. Geological Service said Thursday.

While the net balance shows the U.S. is selling more petroleum than buying, American refiners continue to buy millions of barrels each day of overseas crude and fuel. The U.S. imports more than 7 million barrels a day of crude from all over the globe to help feed its refineries, which consume more than 17 million barrels each day. In turn, the U.S. has become the world’s top fuel supplier.

“The U.S. is now a major player in the export market,” said Brian Kessens, who helps manage $16 billion at Tortoise in Leawood, Kansas. “We continue to re-tool our export infrastructure along the Gulf Coast to expand capacity, and you continue to see strong demand globally for crude oil.”

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Trump Administration Considers Using West Coast Military Facilities for Coal & LNG Exports

By David Middleton – Re-Blogged From WUWT

The Trump Administration appears ready to put the assets of the US armed forces to work in defending US interests in the Global War on Weather.

West Coast military installations eyed for US fuel exports

Originally published October 15, 2018

The administration is interested in partnering with private entities to ship coal or liquefied natural gas through naval installations or other federal facilities, Interior Secretary Ryan Zinke said.

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Is The American Machine Tool Industry Well?

By Albert Albrecht – Re-Blogged From https://www.mmsonline.com

If you can believe the economist, it is on its way to recovery. Machine tool shipments and imports have turned around since the 2009 recession low, and in recent months have steadily improved. After a dismal 2009 and poor start in 2010, quarterly shipments have started to increase, evidence that the industry has started to recover. This is encouraging, if it were not for the fact quarterly shipments fell to record lows and 2009 and 2010. It is like getting a few drops of wine to an empty wine glass—the glass is still less than half full.

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Is Oil About To Become Front-Page News? “A Glut That Held Prices Down For Years Is Essentially Gone”

By John Rubino – Re-Blogged From Dollar Collapse

Here’s a new indicator for you: It seems that the difference between the price of oil here and abroad is a measure of tightness in the market, with a rising spread indicating higher prices in the future, with all the inflationary pressures that that implies. From today’s Wall Street Journal:

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Trade Gap Narrows as Claims Remain Low, Productivity Stays Tepid

By Bloomberg – Re-Blogged From Newsmax

The U.S. trade deficit narrowed in March by the most in two years, while last week’s unemployment filings were below estimates and productivity gains remained lukewarm in the first quarter.

Here’s what you need to know from the economic reports out Thursday morning:

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The Impact Of Currency Exchange Rates On The Economy

   By Katherine Reed

Most people see currency conversion as something simple that appears because of a need to change currency. The problem is that currency exchange is incredibly complicated and there are so many different things that are analyzed when the rates are calculated. The truth is that exchange rates will always have an impact on business and since the economic recession hit many companies, the impact is a lot higher at the moment. Drastic fluctuations will affect the entire global training market.

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Amazing Amount Of Gold The US Exported Since 2000

By SRSrocco – Re-Blogged From http://www.Gold-Eagle.com

The U.S. exported a stunning amount of gold since the turn of the century.  As the price of gold surged along with the massive increase in U.S. debt, gold exports jumped to record highs.  In 2012 alone, the United States exported nearly 700 metric tons of gold.  The total amount of U.S. net gold exports over the past 17 years equaled the combined gold reserves of six high ranking countries.

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