Increasing GDP per capita alongside rampant population growth over the past several decades fueled the energy industry. It flourished under the diversity and drive of capital markets, allowing citizens to enjoy an increasing level of comfort as our most basic needs became a decreasing worry.
From the drilling rig to the consumer, methods to contribute to the increasing access to citizens’ more burden-full needs will continue to advance as human ingenuity and resulting technological progressions are limitless.
Without refineries, crude oil is worthless. Refineries built in the late 1800s allowed for the capability of altering the yet limited hydrocarbons found in our earth, providing energy needed to enhance our quality of life.
Although a limit cannot be placed on technological advancements, the U.S. in its foreseeable future may never achieve the ultimate goal of becoming an energy independent nation, for many reasons. The fundamental one being the inherent molecular structure of the age-old fossil fuel beneath America’s surface.
What is true energy independence?
When energy imports = 0
Not net energy imports, gross energy imports.
Reliance on any other nation to fulfill the energy needs of your own does not qualify as an energy independent state.
The US has been on a path towards energy independence, but will never achieve the long-revered goal, barred by the mismatch of the country’s energy needs vs. the molecular structure of its own energy supply.
It will continue to rely on other nations for crude imports, regardless of how much it produces domestically.
Below we see that in 2010, 37% of the crude U.S. refineries consumed came from domestic production.
Following the Shale Revolution, this rose to 58% by 2021, or 8.3 mmb/d. A major step towards energy independence!
BUT - the U.S. produces about 11.3 mmb/d, leaving 3.0 mmb/d to be exported internationally!
Why is that? Why don’t refineries consume that 3.0 mmb/d instead of importing it from Canada, Mexico, Saudi Arabia, Russia, and 22 other countries?