Oil import: Nigeria drops from 2nd to 5th on US top 10 list

Fresh data has shown that Nigeria now ranks 5th from 2nd on U. S top 10 list of countries it has imported oil from in the last 30 years.

Before US shale oil started booming, the US had bought 91 billion barrels of crude oil from 80 nations.

The Energy Information Agency, EIA’s data on US oil import since 1986 showed that from 1986 to 2016, the U.S. imported 91.2 billion barrels of crude oil, in just under 244,000 individual records.

On the top five is Nigeria. The country was once the second-largest provider of oil to the US. According to EIA, Nigeria has sent the US about 7.8 billion barrels of oil in the last three decades.

Since Nigeria produces mainly lighter crude, similar in grade to the oil being produced by the now booming US shale producers, shale has now dealt a huge blow on Nigeria, forcing the country out of the US market.

In 2010, the US imported 983 MBOPD of oil from Nigeria.

However, four years after, US importation fell to just 58 MBOPD, a drop of 94 percent.

Sadly, according to EnerCom Analytics, the situation is not likely to change any time soon, reason not fetched- the “US shale is projected to grow significantly in 2017”.

Top on the list is Canada. The country has provided the most oil to the US—a total of 17.3 billion barrels since 1986. Imports from Canada have been growing steadily, powered primarily by oil sand production. The country has been main source of imported oil for the US since 2004, and has grown significantly since then. The US imported more than 3,250 MBOPD from Canada last year, nearly triple the volume imported from Saudi Arabia.

Saudi Arabia has sent the US more than 14.5 billion barrels of oil since 1986. It’s the US’s second-largest oil source. Imports from the OPEC leader are falling however, gradually declining from the peak 1,726 MBOPD America received in 2003. In 2016, the US imported 1,097 MBOPD from the kingdom, making it the current second-largest oil source.

Perhaps more surprising is third place: Mexico. At 12.1 billion total barrels, Mexico was actually the primary import partner of the US back in 1986, and has always been in the top five sources. Production from the country has been declining in recent years however, and lower supply combined with growth in US shale production mean Mexican oil exports to the US have been decreasing. Current export rates are down nearly two thirds from their peak in 2004.

Despite occasionally rocky relationships with the US, Venezuela has been America’s fourth-largest source of oil since 1986. The heavy oil producer has provided the US with about 11.9 billion barrels of oil over the last thirty years. In 1996 and 1997 Venezuela ranked first among America’s oil import partners. Like Mexico, however, imports from Venezuela are currently declining. Venezuela’s current economic troubles and unrest will likely push imports down further.

Iraq, Angola, Colombia, Kuwait and the UK represent the 6th through 10th largest sources of oil for the U.S. Of these, the UK has seen the largest change in production. Imports from the North Sea, or the UK and Norway combined, were once a major source of oil for the US. In 2002, the two countries exported 753 MBOPD of oil to the U.S. Like many other oil trade partners of the U.S., however, declining production has sharply decreased imports. In 2014, the US imported only 19 MBOPD from the UK and Norway, representing a decline of 97 percent, according to EnerCom Analytics.

Nigeria is one of the countries negatively affected by drop in oil prices, reason being that the country’s economy relies mainly on crude oil exports.

Thankfully, the country was exempted from joining in the OPEC oil cut, with extra nine months added to the deal, extending into 2018.

Now, Nigeria Keeps monitoring rise in oil prices in order to boost earnings and implementation of capital and developmental projects.

Brent Crude Oil Spot Price is at a current level of $53.35, up from $52.78.