Since it is election times let’s check in on “U.S. Energy Independence”.
Maybe it is time for a look at whether any president can deliver on the “U.S. Energy Independence” mantra. And in this case a little humor can’t hurt either. The video will make you laugh and also make you wonder how an entire nation can be fooling itself so badly.
However on a more serious note as you watch this sad but true tale keep in mind that in the U.S. “Energy Independence” means crude oil. The U.S. is independent on both natural gas and coal but still imports over 50% of its “crude oil” according to the EIA data.
For a different angle on “Energy Independence” consider this…
According to the EIA the U.S. consumed 47 million pounds of uranium fuel in the nation’s nuclear power plants in 2010. Of that 47 million pounds only 8% was domestically sourced. That is right the U.S. imports 92% of the nuclear fuel needed to run its nuclear fuel generation plants.
In the EIA’s Uranium Marketing Annual Report it gave some detail on where the 92% comes from. “Australian-origin and Canadian-origin uranium together accounted for 37 percent of the 47 million pounds. Uranium originating in Kazakhstan, Russia and Uzbekistan accounted for 41 percent…”
Get this, US oil companies request permits to export oil…?
Well sort of. For now according to the Financial Times they wish to simply move the light sweet crude from the Eagle Ford that is of little value to Texas refineries set-up to run heavier crude streams to east coast Canadian refineries designed to use the lighter grades. Not all crude oil is compatible with all refineries. In many cases they are very specific.
The other motivation is to circumvent the Jones Act. This is how the Financial Times put it.
“One advantage of exporting the crude to Canada is that the US’ Jones Act demands more expensive US-flagged ships for domestic routes. Poten & Partners, a ship broker, estimates it would cost less than $1.50 per barrel to ship crude in a foreign-flagged medium-sized Aframax tanker from Texas to the largest Canadian refinery at St John, New Brunswick. A shorter journey from Texas to refineries in Philadelphia recently cost $4.55 a barrel.”