U.S. Crude Imports Fall to Lowest Level Since 1998

Source: Bloomberg

By Moming Zhou - Jan 3, 2014

U.S. crude-oil imports fell to the lowest level in almost 16 years as domestic output rose, the Energy Information Administration reported.

Overseas shipments, based on the four-week average through Dec. 27, fell 1.1 percent to 7.41 milion barrels a day, the fewest since January 1998, the EIA, the Energy Department’s statistical arm, said in a report today. Net imports were 7.35 million barrels a day, the least in data through November 2001.

“Imports are falling because we can produce more oil now,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “That can save us tons of money and is good for the economy.”

Fracking and horizontal drilling have boosted output from shale formations, including the Bakken in North Dakota and Eagle Ford in Texas. Domestic production increased to 8.12 million barrels a day last week, the most since September 1988. Output surpassed imports in October for the first time since 1995, according to the EIA.

Read more: http://www.bloomberg.com/news/2014-01-03/u-s-crude-imports-fall-to-lowest-level-since-1998.html