[Venerye]

I get that the US is a net importer of oil. Why do we export 1 mbpd and not use it for ourselves?
CIA World Factbook 2/3 down

Might be a stupid question; someone please explain...

[DomusAlbion]

I’m guessing that the US exports a lot of its Alaskan oil to Japan. The terminals are closer to Japan than any US port. That money then buys oil from other exporters.

[Tyler_JC]

It's sometimes cheaper to export oil from Alaska to Japan rather than ship the oil all the way to New Jersey to refine it.

It's all about shipping costs.

[Venerye]

In that case, if ANWR is drilled, will the resulting oil be exported?

[DomusAlbion]

$this->bbcode_second_pass_quote('Venerye', 'I')n that case, if ANWR is drilled, will the resulting oil be exported?

[3aidlillahi]

Doesn't it also have to do with the type of oil and refining capacity in US and Japan? Is it that Alaskan oil is more sour and Japanese refineries are better capable (for a cheaper price) than US refineries for refining it? Then we buy better quality oil from other nations?

[aflurry]

it's because money is fungible.

[emersonbiggins]

$this->bbcode_second_pass_quote('DomusAlbion', '')$this->bbcode_second_pass_quote('Venerye', 'I')n that case, if ANWR is drilled, will the resulting oil be exported?

[Keith_McClary]

Just guessing, but small Carribean countries don't have their own refineries or supertanker terminals so they have to get products via the US. These would count as exports even if they were oil from Saudi, etc.

Also there is canned motor oils Penn, Castrol, etc.