The Changing Anatomy of U.S. Oil Imports Over the Last Decade
The Changing Anatomy of U.S. Oil Imports
In 10 short years, Canada has replaced the once mighty OPEC
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
OPEC was once a name that made world leaders shake in their boots.
In the early 1970s, the infamous oil cartel controlled more than 50% of global market share. The power of the cartel was also clear – in response to the Yom Kippur War of 1973, many OPEC countries (that were a part of OAPEC – the Organization for Arab Petroleum Exporting Countries) initiated production cuts and an oil embargo against Western countries.
Oil prices quadrupled from $3 to $12, and OPEC producers raked in the cash.
Meanwhile, the West was in a panic. Emergency energy rations were imposed, currencies were devalued, gasoline sales were restricted, and Sunday driving was banned in seven European countries.
No Longer Mighty?
The organization still has some influence, though it seems to be harder to come by.
After many months of squabbling, OPEC recently came to its first deal to cut production since 2008. That’s kept the oil price above $50/bbl, but gains will be effectively capped once low-cost shale producers ramp up production again.
OPEC often touts its 81% share of global “proven” reserves as a sign of its might:
However, it seems OPEC’s peak influence is in the rear-view mirror due to several external factors.
To start with the obvious, oil is slowly waning in importance in the global energy mix. According to the EIA, oil made up 34% of total global energy demand in 2010. By the year 2040, the EIA expects this share will be closer to 30%, though things could happen faster if the technology behind renewables and batteries makes a bigger impact than expected.
Next, U.S. domestic production has almost doubled because of the shale and fracking revolution. In 2008, the U.S. produced 5.0 million bpd, and in 2015 the country averaged 9.4 million bpd.
Lastly, as you can see on the chart, accelerated development of Canada’s Oil Sands has enabled the U.S. to buy any imports needed from Canada instead of the Middle East. In 2005, Canada only supplied 16.1% of U.S. oil imports, but Canada is now the major supplier of oil to the U.S. with a massive 43.0% share.
With Donald Trump taking the reins in 2017, Obama’s decision on the Keystone XL pipeline could easily be reversed and then fast-tracked for completion. Such a move could bump Canada’s share of U.S. oil imports even higher, downsizing influence from OPEC even more.
It’s not just a changing global macro environment that is hurting OPEC’s influence.
Internally, their members have shifting goals and needs, and this has made the organization largely dysfunctional over recent years.
The biggest factor? It’s Saudi Arabia, a country that is the largest oil producer in the group, but also a global low-cost leader. It has outsized influence in the cartel, but it also has way bigger margins to play with. This means that sometimes maintaining market share is more important than maximizing profit margins for the Saudis, and other countries disagree with this stance.
With the Saudis finally capitulating to a production cut, maybe the OPEC forces can remain aligned over the near-term. Then again, it might be a temporary fix as OPEC influence continues to slowly sink – especially now that OPEC as a whole is only the second biggest supplier of imports to the U.S., and shrinking.
Map: Oil and Gas Spills in the U.S. Since 2010
Oil and gas spills can be messy, but where are they most likely to occur? This graphic looks at oil and gas spills in the U.S. since 2010.
Mapped: Oil and Gas Spills in the U.S. Since 2010
The recent energy crisis has highlighted the integral role that hydrocarbons play in fueling the modern world, but these fossil fuels still come with their fair share of downsides.
Aside from the obvious climate impact they bring, one other downside in particular is spills, which can lead to ecological and economic damage. These can happen due to pipeline leaks, train derailments, or other industrial disasters.
This graphic from Preyash Shah provides a visual overview of every oil and gas spill in the contiguous U.S. since 2010. Data is tracked by the U.S. government’s Pipeline and Hazardous Materials Safety Administration (PHMSA).
U.S. Oil and Gas Spills (2010‒2022)
The majority of spills that have occurred come mostly from crude oil, followed by petroleum products and gas. Note that this data covers the quantity of spills and not damages or volume.
|Spills by Product Type||Portion of all U.S. Spills|
|Highly volatile liquids & flammable gas||16%|
|Liquefied petroleum gas / natural gas liquids||8%|
|Other highly volatile liquids||6%|
Crude oil, which makes up just over half of documented spills, is also one of the most costly. Contaminations can persist for years after a spill, and its impact on local mammals and waterfowl is particularly harsh.
This has been the case with the Deepwater Horizon spill (also known as the “BP oil spill”), which experts say is still causing harm in the Gulf of Mexico.
Other products with lots of spills include petroleum products such as diesel or gasoline, as well as liquefied natural gas or other volatile liquids. Interestingly, liquefied carbon dioxide can also be transported in pipelines, commonly used for carbon capture storage, but requires high pressure to maintain its state.
When looking at the location of spills, it’s clear that the South Central states have experienced the highest number of disasters. In contrast, the West Coast has had substantially less activity. However, this makes much more sense when looking at the dominant oil producing states, where Texas and surrounding neighbors reign supreme.
|Rank||State||Oil & Gas Spills (2010-2022)|
Of the 4,901 spills during this period, Texas accounts for 1,936 or roughly 40% of all oil and gas spills. This is followed by Oklahoma, which has had 407 spills and is one of the largest net exporters of oil and gas in the country.
What Causes Spills?
Oil and gas spills actually have a surprisingly long history, with one of the earliest dating back to 1889, when a spill was reported on the coast between Los Angeles and San Diego.
Causes have consisted primarily of weather, natural disasters, equipment and technological malfunction, as well as human error.
However, they only became a widespread problem around the halfway mark of the 20th century, when petroleum extraction and production really began to take off. This era also saw the emergence of supertankers, which can transport half a million tons of oil but therefore make the risk of spills even costlier.
In fact, the biggest spill off U.S. waters after the Deepwater Horizon disaster is the 1989 Exxon Valdez spill in Alaska, when a tanker crashed into a reef and 11 million gallons of oil spilled into the Pacific Ocean.
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