U.S. Plays Its Foreign Policy Hand Freed From Oil: Fund Managers

May 14, 2018


The US now has greater geopolitical flexibility than it’s had in a long time, fund managers SL Advisors pointed out over the weekend.

Case in point: The administration’s withdrawal from the Iran nuclear deal without public regard for a resulting decrease in Iranian oil exports.

Going back to Richard Nixon, US presidents have continually called for energy independence, but it has only now been achieved.

“The U.S. is already energy independent on a BTU-equivalent basis (i.e. we produce more energy than we consume in aggregate).

“We became natural gas independent last year as Liquefied Natural Gas exports ramped up.

“We’ve been a net exporter of ethane since 2014, and of propane since 2011,” SL Advisors said at Seeking Alpha.

And the story of oil is almost as good:

“In August 2006, net imports of crude oil and petroleum products hit 13.4 Million Barrels per Day (MMB/D). Today that figure is below 3 MMB/D.

“Even when the U.S. does become a net exporter we’ll still be importing the sour, heavy crude favored by domestic refineries while exporting the lighter grades that are increasingly produced from shale.”