Oil Business Is Crude

Oil Business is Crude

ECO/561

May 5, 2011

University of Phoenix

Oil Business is Crude

To understand the supply and demand of oil around the world, the team is tasked to determine the sources of the supply of oil in the United States of America. The team learned how much the United States needs, how much the United States supplies for itself, and where the rest of the oil comes from.

The United States Energy Information Administration indicates that America uses 18.6 million barrels of oil a day. That is approximately 2.8 barrels of oil per person. The United States consumes more oil than any other country in the world. The top consumers of oil include the following: US, China, Japan, India, Brazil, Germany, Saudi Arabia, Canada, and Mexico.

“According to the U.S. Energy Information Administration (2010), the U.S produces about 1.95 million barrels of crude oil per day, and separately, we import another 9.783 million barrels of crude oil per day” (p. 1). Texas is the number one producer of oil in the United States.

Where does America import the other 9.783 million barrels? The top countries the United States imports from are Canada, Saudi Arabia, Mexico, Venezuela, and Nigeria. See the Chart and Table below. Canada imported approximately 2.8 million barrels a day in February. Depending on the period, Saudi Arabia and Mexico are close rival importers. The numbers start to taper off, but essentially, the United States is reliant upon other countries to support its need for oil.

Chart 1

Total Imports of Petroleum (Top 15 Countries)

(Thousand Barrels per Day)

Canada 2,831 2826

SAUDIA ARABIA 1,114 1102

MEXICO 1,104 1366

VENEZUELA 989 1030

NIGERIA 978 1007

RUSSIA 437 531

ALGERIA 394 565

ANGOLA 370 316

IRAQ 263 470

ECUADOR 242 178

COLOMBIA 211 332

VIRGIN ISLANDS 182 276

BRAZIL 177 274

NETHERLANDS 129 101

KUWAIT 118 147

Table 1

Conclusion

When one follows the numbers, the numbers indicate that the United States has a...