Frequently Asked Questions
Why is the United States exporting gasoline when prices are so high?
In 2011, the United States exported more petroleum products, on an annual basis, than it imported for the first time since 1949. American refiners still imported large, although declining, amounts of crude oil. Gasoline exports were about 18% of total U.S. petroleum product exports in 2011, however, on a monthly basis, the U.S. was a small net exporter by the end of the year. Distillate fuel exports were about 30% of total U.S. petroleum product exports in 2011.
Most of the U.S. exports for gasoline and distillate come from the U.S. Gulf Coast where an excess in supply has resulted from both declining U.S. demand for gasoline (preliminary data for 2011 show U.S. gasoline consumption 6% lower than 2007) and increasing refining capacity. Gulf Coast refineries have a competitive advantage in some world markets. They have a sophisticated refining complex and can run relatively lower quality, and cheaper crude oils. In addition, they use natural gas for their fuel, which at current prices is an advantage compared to refineries fueled by petroleum, and have good water access and a location that allows for a relatively short-haul voyage to growing Latin American markets.
Historically, the U.S. market has relied extensively on gasoline imports for supply, particularly on the East Coast which has been the destination of about 85% of total U.S. gasoline imports. The Gulf Coast refineries export product rather than send more to the East Coast which receives most of its gasoline import volumes because pipeline capacity and domestic waterborne shipping constraints currently discourage increased volumes from traveling from the Gulf Coast to the East Coast. As long as European and other gasoline supplies remain competitive, the East Coast will continue to draw on these supplies. Additionally, expanded Midwest refining capacity is backing out requirements to ship products from the Gulf Coast north to that area.
The growth in U.S. gasoline exports does not necessarily mean higher pump prices for U.S. consumers. Rather, export markets are providing an outlet for refiners that might otherwise have faced lower profit margins that could encourage them to reduce output or possibly even shutdown, which could cause gasoline prices to increase. The March 7 edition of This Week In Petroleum, Déjà vu all over again? provides an analysis of key factors that the U.S. Energy Information Administration believes are driving gasoline prices.
Learn More:
Record Gasoline Exports Do Not Appear to Be Driving Gasoline Prices
U.S. petroleum product exports exceeded imports in 2011 for first time in over six decades
Other analysis of U.S. petroleum markets
Data on U.S. crude oil and petroleum imports, exports, and net imports
Posted: April 20, 2012
Other FAQs about Crude Oil
- Do we have enough oil worldwide to meet our future needs?
- Does EIA have data on U.S. oil refineries and their locations?
- Does EIA have data on the movement of crude oil and ethanol by rail and truck?
- Does EIA have data on the type or quality of crude oil processed in U.S. refineries?
- Does EIA have maps or information on the location of natural gas and oil pipelines?
- How dependent is the United States on foreign oil?
- How many gallons of gasoline does one barrel of oil make?
- How much coal, natural gas, or petroleum is used to generate a kilowatt-hour of electricity?
- How much does it cost to produce crude oil and natural gas?
- How much of the oil produced in the U.S. is consumed in the U.S.?
- How much oil does the United States consume per year?
- How much oil is produced in Alaska and where does it go?
- How much oil is used to make plastic?
- How much petroleum does the United States import and from where?
- What are the differences between various types of crude oil prices?
- What are the products and uses of petroleum?
- What countries are the top world oil consumers?
- What countries are the top world oil net exporters?
- What countries are the top world oil net importers?
- What countries are the top world oil producers?
- What do I pay for in a gallon of regular gasoline?
- What is the difference between crude oil, petroleum products, and petroleum?
- What is the outlook for home heating fuel prices this winter?
- What types and amounts of energy are produced in each state?
- When was the last refinery built in the United States?
- Where is the boundary for state and federal offshore oil and gas production?
- Why don't fuel prices change as quickly as crude oil prices?
- Why is the United States exporting gasoline when prices are so high?