US Dependence On Saudi Oil Is Going Back Up, At Least For The Next Couple Of Years

Friday, August 17, 2012 07:24
US Dependence On Saudi Oil Is Going Back Up, At Least For The Next Couple Of Years

Tags: China | oil | U.S. economy | world economy

The US has raised imports of oil from Saudi Arabia by 20% this year. Renewed dependence on Saudi oil began last summer. The US had been ramping down its dependence on foreign oil but is being driven back by the turmoil caused by the Iranian nuclear threat.

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Saudi Arabia agreed to take up Iran’s production slack after the US imposed sanctions. European governments and the US government have both welcomed Saudi’s increased production but stability in Saudi has become questionable lately after the deaths of royal family leaders and because of sectarian strife.
Its energy policies have also become unstable as a result. The US has had a relationship with Saudi for years that became even more critical during the Arab Spring uprisings. The recent increase in reliance on Saudi oil illustrates just how difficult it is for the US to extract itself from foreign oil dependence.
Experts project the new increase in dependence will only last a couple of years. By then, production from Canada and the Gulf of Mexico should be able to make up the deficit. If oil prices increase in the Middle East, that is a global problem, not just a US problem.
Even US companies buy oil wherever they can find the best price across the globe. And
the renewed exports to the US from Saudi has made up for Saudi losses from the Chinese marketplace.

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