Can the US become EU's oil supplier??

og kush420

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Quote from: $anounimus$ on August 16, 2022, 07:04:07 AM

I think it's just a change in the market on the other hand, now America is in a better position to provide a new source of crude oil. Extraction of oil and shale gas has recently become economically viable, with large fields being developed in states such as Pennsylvania, Texas, Louisiana and Arkansas. This will allow the US to become the dominant oil supplier for several years to come. As a result, American companies have the potential to benefit greatly from alliances with the EU. such market changes will benefit the EU and the US.

Why would US be EU oil supplier.
Week ago Biden was in USA - asking Saudis about the help to provide the oil and gas. Saudi did not agree to all terms and condition
Would USA be providing the oil to EU after they get supply from Saudia - no they will fullfill their needs only

Pejoh Asu

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As the main European allies, of course the US can be an oil supplier partner, the USA has an oil source obtained in many countries, especially in Arabic, and according to the oil price report is down so that the thing that can make prices increase is to increase the oil demand.

$anounimus$

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I think it's just a change in the market on the other hand, now America is in a better position to provide a new source of crude oil. Extraction of oil and shale gas has recently become economically viable, with large fields being developed in states such as Pennsylvania, Texas, Louisiana and Arkansas. This will allow the US to become the dominant oil supplier for several years to come. As a result, American companies have the potential to benefit greatly from alliances with the EU. such market changes will benefit the EU and the US.

Sithara007

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From what I know, the United States is the largest producer of crude oil in the world (11-12 million barrels per day). But it consumes more than what it produces and therefore is a net importer of crude. But the catch here is that Canada (4.5 million barrels per day) and Mexico (1.7-1.8 million barrels per day) export most of their crude through the ports in the United States. So the US actually exports millions of barrels of crude per day, more than it imports from other countries outside North America. But for the US exporters, East Asia (China, Japan, South Korea, Taiwan.etc) is a more lucrative market, when compared to Western Europe.

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Quote from: Majestic-milf on August 05, 2022, 05:47:38 PM

With all the ruckus surrounding America right now; their part in the Taiwan issue and also their less than secret partnership with the Ukrainians, I think it's safe to say that Biden has a lot on his plate. But how about we add more??
We've had the issue of the Russians retaliating against all the sanctions imposed on them by threatening- if I can be allowed to use that word- to cut off supply of crude to the EU and the body deciding to reduce it's use and dependence on their oil. This sounds achievable, right? Fine..
Over the years, the US have been known to have amassed a lot of crude oil and gas to last generations! US oil purchase history

And Russia has earned almost a $100bn just from sales to the EU. Correct me if I'm wrong, but I think it's from such means they are being able to foster the war, so if the US can block this means and become the only supplier to the EU, it could cause a big deal between the US and Russia. But the question there will be; can they risk it?

What oil ? EU is going net zero ... they are trying to starve us here

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Quote from: Kadal Ijo on August 14, 2022, 01:30:45 AM

Oil prices fall but world oil needs continue to increase, especially the European region which is the world's largest oil consumer, I think it is difficult to meet the needs of European oil, especially since the US is also the world's largest oil importer, unless Europe wants to buy at a more expensive price.

The demand for oil is not stopping any time soon whether in Europe or across the world. The issue that the europe energy need is on the public is because of the retaliatory sanction from Russia and this shows that oil is still at high demand. US will not be able to take care of the oil need of Europe alone so they will also need help from neighbouring continent.

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There are better options than the United States to supply oil to the European Union, including the Arab Gulf states, in terms of ease and speed of transportation, as well as cost. Crude oil can be imported from Saudi Arabia and re-refined in European platforms.
The matter does not seem the same with regard to gas supplies, since natural gas can only be transported in pipelines, which of course do not currently exist and will require years to establish to connect with producing countries. Therefore, the only solution is to import liquefied gas, which costs more and requires platforms to convert it into natural gas after transferring it. Most EU countries do not have these platforms .

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Europe has Arabic countries right there, why would they need it from USA? I mean maybe there could be some problems politically with them too but I guess it is not as much and we will probably see a better and easier logistical solutions if we do that.

Sure you can do USA to EU as well via ships if we are talking about just Oil, the amount of oil one ship can carry could be huge, and if you have constant ships going and coming back constantly then it could survive and works out. BUT! why would you, you could literally just have Saudi oil as your main resource and could get it via some pipe or something if you really wish to and you could feed the entire Europe with that.

Kadal Ijo

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Oil prices fall but world oil needs continue to increase, especially the European region which is the world's largest oil consumer, I think it is difficult to meet the needs of European oil, especially since the US is also the world's largest oil importer, unless Europe wants to buy at a more expensive price.

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Quote from: amishmanish on August 09, 2022, 10:27:37 PM

US is not a great oil producer, yes it has vast deposits. Shale gas is also an asset of US, but if you that can transported in a cost effective manner to Europe through Pacific and as cost effective as Russians do to Europe than it can make some sense, but that's improbable. Yes US can force Russia to supply gas at lower costs to Europe by a mix of market manipulation and sanctions

US have got big oil reserve, but it keeps it away from exporting. It makes good relations with Gulf countries and make use of the oil. If USA and Russia are in good relation what you've said could happen through agreement, but not through manipulation and sanctions. The oil producers limiting the production to increase demand too a reason for the oil problem all around. Moving to the renewable energy sources is the right choice for now than looking over the oil issues.

DrBeer

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The US can supply exactly the same oil to the EU as any other supplier! Moreover, an agreement has already been reached on increasing the level of shale oil production in the United States, which can partially cover the volume that the terrorist country supplied to the EU. The question is who will cover the rest? But the problem is that over the next 4 years, Saudi Arabia will increase (by the way, production was already raised in July and August) production, which will cover 80% of Russia's oil supplies to the EU. I think that the time is not so far away when Venezuela will return to contacts with an adequate world and resume oil supplies to the whole world.

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Quote from: paxmao on August 09, 2022, 03:10:53 AM

It is already a supplier as far as I know, the problem with US oil is that is not going to be as cheap as other sources that are more readily available and can be extracted at a cheaper cost. The fracking process requires continuous CAPEX investments that are much larger than those required for conventional oil. Despite the major "easy" fields have been used up, there is still much better quality and price outside US.

Being supplier and being "the" supplier is a big difference. If USA had enough oil than first order of business would be making sure that its own people would buy it cheap, but they can't make the companies sell it for cheap when the price is so high. Companies in oil business are making more profit, but the price of oil is high right now so they can't just say "stop with the increasing prices" because it is increasing already and they can't do anything about it.

But, if they could somehow manage to make it stop, then they would be able to cheapen it for the citizens, not Europe. So, they can't just cover all of the needs from EU, maybe Arabic countries with a bunch of oil could help EU instead.

amishmanish

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US is not a great oil producer, yes it has vast deposits. Shale gas is also an asset of US, but if you that can transported in a cost effective manner to Europe through Pacific and as cost effective as Russians do to Europe than it can make some sense, but that's improbable. Yes US can force Russia to supply gas at lower costs to Europe by a mix of market manipulation and sanctions

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Quote from: paxmao on August 09, 2022, 03:10:53 AM

It is already a supplier as far as I know, the problem with US oil is that is not going to be as cheap as other sources that are more readily available and can be extracted at a cheaper cost. The fracking process requires continuous CAPEX investments that are much larger than those required for conventional oil. Despite the major "easy" fields have been used up, there is still much better quality and price outside US.

Shale oil costs anywhere between $40 and $60 per barrel to extract (taking in to account the higher labor cost in the United States). And this is the reason why a lot of the companies filed for bankruptcy back in 2020, when the crude prices went down to $40 per barrel. Even now they haven't resumed production at full capacity. The shale oil producers, as well as OPEC+ understands that oversupply can once again bring down the prices to 2020 levels. So even if they have the capacity to increase production, the oil producers won't be that excited to do so.

paxmao

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It is already a supplier as far as I know, the problem with US oil is that is not going to be as cheap as other sources that are more readily available and can be extracted at a cheaper cost. The fracking process requires continuous CAPEX investments that are much larger than those required for conventional oil. Despite the major "easy" fields have been used up, there is still much better quality and price outside US.

numberd

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This is not possible, it would be very difficult without a pipeline between the US and Europe, it would be a huge expense, and it would not be possible. There are also some countries in the EU that absolutely disagree. If dependent on the United States, the European Union will decline.

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It's not just about the USA but there are many other new oil suppliers that will try to act as an alternative and supply the oil of European countries because of the problem they have with Russia and the USA is just one of them, however, whenever we talk about supplying oil we should not forget about transferring oil to European countries Russia could easily send oil and gas without of any problem for years while there are many other suppliers like the Arabs and USA but comparing to Russia they are really far this will increase the shipping fees and in the result, the oil will become more expensive for Europe.

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Quote from: Smack That Ace on August 06, 2022, 04:05:57 AM

Russia has long since turned its oil export market to Asia and no longer considers Europe as its important partner, Russia has overtaken Saudi Arabia to become the second largest oil supplier in India. It will hurt more for the EU if the EU completely cuts off oil supplies from Russia and it will increasingly rely on the grace of the US, more dependent on the US. This is what the US really wants.

There's still Norway, West Africa, Middle east. Until the import from Russia becomes illegal(Feb 2023) refiners would be buying from Russia like there's no tomorrow.

Anyhow, it's ironic because Russia has exported more oil than ever in this period and continues to make record profit. Almost making 25 billion dollars each passing month and it will continue to rise simply because everyone will be stocking before the ban. Giving Russia ample of time to develop relations with other non-EU countries to sell their oil at a better price.
Nothing will change for Russia.

Shows you how much hypocrisy there is within the EU Wink

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USA have big oil reserve which is being kept to handle unexpected needs. They always have a long term focus and work on it. As said, the infrastructure is not supportive as well as the supply is low compared to Russian oil. For some time period European countries need to sustain with what is available and the solution is through Gulf countries and not out of USA. European countries have moved to think with the alternate plans of solar energy generation which is quite good for long term than depending for oil.

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Quote from: dothebeats on August 06, 2022, 06:34:19 AM

There's a plethora of reasons why this shift wouldn't be so easy for the Europeans, much more the USA. The US is a country hugely dependent on oil, and even if they can produce what they needed and keep some of it on reserves, they still can't supply the demand of oil in EU. Most probably, these European countries would still be buying from the Russians as things ease out on the war. They'd just hide it under the rug and pretend that things didn't happen because they need that oil more than anything else in the world.

There were reasons why Russia was the supplier of Europe when it comes to gas and oil, it is close, pipelines were constructed and Russia has way more oil and gas than what they need, neither of those factors exist when it comes to the US, the US is too far away, there is no infrastructure ready and the US does not have enough oil and gas to spare for Europe, so while on the short term something could be done to alleviate somehow the energy crisis Europe is going through, it will never be the long term solution the European leaders are looking for.

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