Statistics

$700 billion in oil imports? Hardly

August 16th, 2008

The notion that the United States is spending $700 billion on foreign oil is finding its way into Rush Limbaugh’s radio program, in comments on the Huffington Post, in the forum for devotees of Fountainhead author Ayn Rand, on Slate and, of course, youtube.

It is being used by those who support additional U.S. domestic oil drilling, on one hand, and by those who are critical of record oil company profits, on the other.

It’s safe to assume that, as gas prices and energy policy find their way into the presidential election debate between Democrat Barack Obama and Republican John McCain, the number will continue to find its way onto websites, into print and into conversation.

It appears it all started with T. Boone Pickens and his campaign, as a self-described lifelong oil man, to talk about alternative energy. In advertising on television and in print, Pickens has pointed out that the United States is ever more dependent on foreign oil. And that we send $700 billion offshore every year. He spells it out in his video at www.pickensplan.com.

Problem is, the United States does not import $700 billion of foreign oil per year, not even close.

So what’s the real total? According to U.S. Census data analyzed by WorldCity, the U.S. imported $245.8 billion in oil in 2007.

Make no mistake: It is the United States’ No. 1 import, and has been since 2004, when it replaced motor vehicle imports. (Foreign motor vehicles had been No. 1 for more than a decade prior to the run-up in oil prices.)

But the notion that $700 billion in U. S. dollars is being sent offshore annually to pay for oil, with the inference that it is going to those who wish us harm in the Middle East, could not be more fallacious.

Consider the numbers: Of that $245.8 billion in annual oil imports which is less than a third of the $700 billion figure the largest single provider, at $38.3 billion, is Canada, certainly no enemy of the United States. The fifth-largest provider is Mexico, from which the United States imported $30.5 billion in oil in 2007. The illegal immigration problem notwithstanding, it is hard to call Mexico an enemy either.

Hemispheric neighbors Ecuador, Brazil and Colombia, Nos. 9, 10 and 12 in 2007 oil imports, respectively, chipped in another $11.7 billion. Subtract the total of those friendly nations $80.5 billion and you have a touch over $165 billion.

Of that $165.2 billion, $33.9 billion comes from Saudi Arabia, the No. 2 importer behind Canada. Another $32.1 billion comes from No. 4 Venezuela, certainly no friend of the Bush Administration specifically or the United States generally. The next highest Middle Eastern nation is No. 8 Iraq, which now accounts for $10.9 billion in oil. Tough to call it an enemy of the United States but it is clearly in the Middle East.

It is increasingly difficult to decipher our relationship with Russia, given the situation in Georgia, but it is another major oil provider. It ranks No. 13 at $3.2 billion. In 2007, we received no oil from Iran or Syria.

Total these nations’ imports, and lump them into a less than a really good friend of the United States category. Add in everyone else who might be objectionable to U.S. interests, or once have been so, or is simply located in the wrong part of the world Kuwait, who we liberated from Iraq in the first Gulf War; Libya, in our camp since Sept. 11 but with a spotty history as far as U.S. relations; Oman, in the Middle East; Yemen; United Arab Emirates; and Egypt and the total is still only $87.6 billion.

That is about an eighth of the total finding its ways onto websites and into conversations. Of course, few would dispute the oversized impact foreign oil has on our foreign affairs, so a United States independent of foreign oil or even largely independent of foreign oil would not be without benefits. On that, the left and right seem to agree.

For a list of Top U.S. imports through the first six months of 2008, the most recent statistics available, click here and scroll to the bottom of the story.

The top sources for foreign oil imports into the United States in 2007 and, for purpose of comparison, 15 years ago, follow:

NY passes LA and it's all about oil (08/13/2008)

Colombia FTA in headlines as Clinton aide steps aside (04/07/2008)

Number of U.S. trade surpluses at 127 nations, highest since 1998 (02/21/2008)

U.S. trade breaks $3 trillion mark; first deficit decline in 15 years (02/15/2008)

Annual U.S. trade with a record 44 nations will exceed $10 billion (01/19/2008)

Annual trade growth forecast to slow but numerous records still will fall (01/17/2008)

U.S. exports to Putin's Russia growing far faster than national average (12/23/2007)

Baltimore, N.Y. among big gainers in exports (12/21/2007)

Aircraft, corn, gold exports growing rapidly (12/18/2007)

Slumping dollar means surging exports (11/13/2007)

With oil above $90 per barrel, crude and China play biggest role in deficit since 1992 (10/30/2007)

U.S. trade passes $2 trillion through August, a record (10/25/2007)

Exports, in GOP debate spotlight, continue brisk, record growth (10/09/2007)

U.S.-Burma trade vaporized in 2003 (09/30/2007)

Algeria, Vietnam among fastest-growing U.S. trade partners over five-year period (09/25/2007)

U.S. trade growth slowest in years (08/15/2007)

2nd U.S. TradeNumbers released (08/12/2007)

U.S. trade up and deficit down (07/13/2007)

1st Q: U.S. trade up slightly as import growth slows -- except with China (05/11/2007)

France, soon electing a new president, surpasses $10 billion in total trade (04/22/2007)

Handgun imports rise sharply, lead by Savannah, Miami, Chicago (04/17/2007)

U.S. trade rises a tepid 6 percent through February (04/16/2007)

South Korea car imports up 1,000% since 1992, but down last two years (04/10/2007)

It's a fact: Algeria, Angola, Chile, UAE, Austria are fastest-growing (04/10/2007)

U.S takes precedent-setting action against China in coated-paper case (04/02/2007)

Media weighs in on South Korea-U.S. free trade agreement (04/02/2007)

South Korea takes big step toward $100 Billion Club (04/02/2007)

U.S. exports advance broadly, from airplanes to corn to tractors to gold (03/19/2007)

Annual Statistics: A quick review of the Top 10 U.S. trade partners (02/24/2007)

U.S. trade, exports, imports, deficit set new annual records (02/15/2007)

Annual statistics: Dallas among nation's fastest-growing districts (02/14/2007)

Seattle registers largest, and one of few, surpluses (02/14/2007)

DC is nation's fastest-growing Customs district for 2006 (02/14/2007)

Philadelphia falls just shy of $70 billion on rapid growth (02/13/2007)

Sneak peek at the annual trade statistic release (01/22/2007)

U.S. has trade surplus with 115 nations, deficit with 116 (11/03/2006)

U.S. trade growth at 14 percent through August (10/16/2006)

Exports to Afghanistan are zooming; led by aircraft, motor vehicles (10/02/2006)

Romania, Bulgaria seek EU status, both rank in Top 100 in U.S. trade (09/28/2006)

Trade with Muslim world growing faster than average (09/25/2006)

Annual Report: No. 17 Saudi Arabia - Quenching the oil thirst (09/15/2006)

New Orleans rebounding, one year after Katrina (08/27/2006)

Six-month report: U.S. trade increases 13 percent, with fast growth from red-hot Chile (08/24/2006)

Annual Report: No. 24 Switzerland - Swiss trade keeping time (07/26/2006)

Annual Report: No. 25 Australia- U.S. posts $8.4 billion surplus (07/26/2006)

Annual Report: No. 23 Hong Kong - U.S. expands trade surplus (07/25/2006)

Annual Report: No. 21 Israel - Glittering give-and-take (07/23/2006)

Annual Report: No. 20 India - Rising player on trade scene (07/22/2006)

Annual Report: No. 19 Thailand - Gains seen in tech products (07/21/2006)

Annual Report: No. 16 Singapore - U.S. sees growth in surplus (07/20/2006)