Trump shocks oil industry as U.S. sells oil to Arabs

Thursday, February 8, 2018
Michael F. Haverluck (

oil refineryThe world’s oil industry is turning upside down under President Donald Trump’s economic leadership, as the United States is now selling its exported oil in the Middle East to the most unlikely oil-rich buyers.

“The United Arab Emirates – a model Persian Gulf petro-state where endless billions from crude exports feed a giant sovereign wealth fund – isn’t the most obvious customer for Texan oil, yet, in a trade that illustrates how the rise of the American shale industry is upending energy markets across the globe, the U.A.E. bought oil directly from the U.S. in December, according to data from the federal government,” a Bloomberg News report published by Newsmax announced. “A tanker sailed from Houston and arrived in the Persian Gulf last month [to deliver the goods].”

Making oil great overseas again

Marketing the superiority of American crude oil – compared to that which is produced in the Middle East – appears to be the difference in the latest transaction, which puts America a step in the right direction as the Trump administration seeks to wean the U.S. off its longstanding dependence on oil from OPEC and begin to be one of the world’s largest exporters of “liquid gold.”

“The cargo of American condensate – a type of very light crude oil – was preferred to regional grades because its superior quality made more suitable for the U.A.E’s processing plants, a person with knowledge of the matter said, asking not to be identified discussing a commercially sensitive matter,” Bloomberg reported.

The latest sale comes as a shock to Lipow Oil Associates LLC President Andy Lipow.

“As a member of OPEC and a large crude producer, I would imagine they would be very self-sufficient in their own crude supply,” Lipow offered, according to Bloomberg.

But such export transactions are becoming more of the norm than the exception under the Trump administration, which has vowed to make America great as a top exporter of oil in the world, once again.

“The end of a ban on U.S. exports in 2015 – coupled with the explosive growth of shale production – has changed the flow of petroleum around the world,” Bloomberg noted. “Shipments from U.S. ports have increased from a little more than 100,000 barrels a day in 2013 to 1.53 million in November – traveling as far as China and the U.K.”

According to a report issued by the U.S. Census Bureau on Tuesday, approximately 700,000 barrels of light domestic crude oil was exported in December by America to the U.A.E. – one of the Middle East’s oil giants.

“It’s the fourth-largest OPEC producer’s first cargo of U.S. oil, according to Energy Information Administration data,” Bloomberg informed. “Although it exports more than 2 million barrels a day, the Middle Eastern country typically imports extra-light condensate to process in a unit known as a splitter. U.A.E. crude production was 2.85 million barrels a day in January. Output has declined from 3.07 million at the end of 2016 as OPEC and allies cut production to reduce a global glut and prop up prices.”

From buyer to seller

Arriving at the Port of Ruwais in Abu Dhabi on Jan. 31 as a shipment from Enterprise Products Partners LP that originated in Houston, Texas, the recent oil export appears to be evidence that the U.S. oil industry under Trump is taking full advantage of volatile tensions between nations in the Middle East … and elsewhere.

“Until last year, the U.A.E. relied on Qatar for its condensate supply,” Bloomberg pointed out. “But the two countries are embroiled in a political dispute, and the U.A.E. decided in June to ban all petroleum ships from Qatar.”

With a newly invigorated economic strategy of oil independence under the Trump administration, the U.S. is making it a policy to not only produce more oil and sell increased amounts abroad, but to use more of its own and drastically decrease its reliance on foreign oil.

“While exports have increased, America’s reliance on foreign oil has likewise decreased – allowing the nation to become considerably more energy independent,” the Western Journal reported. “In just over a decade, oil imports have been slashed by more than 75 percent, according to reports.”

Statistics show that this diminishing dependence on foreign oil will continue well after the first – or possibly second – term of the Trump administration.

“In 2006, America received more than 12 million barrels daily in oil from other countries, [and] as of the most recent records available, that number is now below 3 million,” Western Journal’s Chris Agee noted. “By 2029, experts believe the U.S. is poised to become a net exporter of petroleum.”

During his State of the Union address late last month, Trump stressed how his administration pulled the plug on former President Barack Obama’s anti-oil and anti-coal energy policy, which was instead set on reportedly lining the pockets of radical environmentalists’ green industry that subsidized so-called “clean” or alternative energy producers with taxpayer money.

“We have ended the war on American energy and we have ended the war on beautiful clean coal,” Trump told Congress at the nation’s capital during his popular speech. “We are now, very proudly, an exporter of energy to the world.”

Evolving energy powerhouse under Trump

Shifting gears after the eight years of lackluster energy production under the Obama administration, Trump is already aggressively expanding America’s business of selling its natural energy resources abroad, as the U.S. is retooling its plants for outgoing shipments – not incoming ones, as was the policy under the former president’s clean energy agenda, which went hand-in-hand with the environmentalists’ global climate change movement.

“The U.S. now exports up to 1.7 million barrels per day of crude, and this year will have the capacity to export 3.8 billion cubic feet per day of natural gas,” the Daily Mail informed. “Terminals conceived for importing liquefied natural gas have now been overhauled to allow exports.”

America’s growth in the production of natural energy resources is unprecedented after only one year under the Trump administration – with the U.S. quickly ascending to become a world leader.

“Surging shale production is poised to push U.S. oil output to more than 10 million barrels per day – toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago – and this new record, expected within days, likely won't last long,” the Daily Mail’s Ariel Zilber pointed out. “The U.S. government forecasts that the nation's production will climb to 11 million barrels a day by late 2019 – a level that would rival Russia, the world's top producer.”

American economic dominance in the world – which was a fading dream under the Obama administration – is quickly becoming more and more of a reality under Trump’s leadership.

“The economic and political impacts of soaring U.S. output are breathtaking, cutting the nation's oil imports by a fifth over a decade – providing high-paying jobs in rural communities and lowering consumer prices for domestic gasoline by 37 percent from a 2008 peak,” Zilber impressed. “Fears of dire energy shortages that gripped the country in the 1970s have been replaced by a presidential policy of global 'energy dominance.'”

John England, who serves as the head of consultancy for Deloitte’s U.S. energy and resources practice, marveled at the progress witnessed under the Trump administration, as coal is being displaced at power plants with cleaner, more cost-effective shale natural gas.

“It has had incredibly positive impacts for the U.S. economy, for the workforce and even [for] our reduced carbon footprint,” England proclaimed.

Consider Supporting Us?

The staff at strives daily to bring you news from a biblical perspective. If you benefit from this platform and want others to know about it please consider a generous gift today.



We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details




I agree with this HHS proposal reversing the Obamacare section benefiting transgenders primarily because …





Tornadoes rake 2 Oklahoma cities, killing 2 and injuring 29
Israeli president shocked by German kippa warning
Iraq offers to mediate in crisis between its allies Iran, US
Venezuela negotiators return to Norway for crisis talks
Mike Pence: West Point grads should expect to see combat
Flooding leads to Oklahoma and Arkansas evacuations
New candidates vie to succeed UK’s May with focus on Brexit
Bolton says N. Korea missile tests violated UN resolutions


Gillette is at it again: This time featuring Samson, a transgender man shaving for the first time
French police hunt man who planted explosive device in Lyon, release surveillance photos
Tornado strikes El Reno, Oklahoma; at least 2 deaths confirmed: reports
Thousands march in Hong Kong to commemorate June 4 protests
Israelis protest moves to grant Netanyahu immunity, limit Supreme Court


Cartoon of the Day
Beware: Gun control activists demonizing NRA

NRA wallpaperAs dozens of companies in the United States are taking steps to distance themselves from the National Rifle Association (NRA) after the Florida school shooting, one organization warns them that they are catering to extremists.