U.S. dependence on petroleum imports is growing more rapidly this year than in 1998, due to months of declining domestic oil production spurred on by historically low prices, American Petroleum Institute said.
API said total imports of crude and products averaged 10.4 million b/d for the first 5 months of the year, down from the same period a year ago.
"But imports a year ago greatly exceeded immediate needs, because companies were building their stocks while oil supplies were relatively cheap. This phenomenon masked a realistic assessment of the growth in import dependency," API said.
U.S. crude oil production of 5.893 million b/d in May was down 6.8% compared with May 1998. API said the rapid decline in domestic supply this year, along with continued growth in demand, has caused the gap between domestic supply and demand to increase 7% so far in 1999.
Total crude and products imports in May as a percentage of total U.S. petroleum deliveries were 54.5%. That included crude oil imports of 8.339 million b/d, down 6.9% from May 1998.
One contributor to the more rapid rise in import needs has been falling output of U.S. natural gas liquids, also sensitive to crude oil price changes.
In May, NGL output fell by 5% to 1.718 million b/d from May 1998 and by 7% during January-May when compared with the first 5 months of 1998.
Products deliveries
API said that May gasoline deliveries, a key barometer of demand, were 8.332 million b/d in the U.S. When compared with adjusted year-ago data, these deliveries rose a scant 0.6%, a sharp contrast with gasoline deliveries growth in 1998 estimated at about 3%.
U.S. kerosine jet fuel deliveries in May were 1.609 million b/d, up an estimated 3% from May 1998. In the war over Kosovo, the U.S. Defense Energy Support Center reported that, from the beginning of March-before the air attack operations started Mar. 24-to the end of May, U.S. warplanes used 5 million bbl of jet fuel.
API estimated U.S. planes may have been using 80,000 b/d of jet fuel by mid-May and as much as 100,000 b/d by June 1. Total jet fuel use by Operation Allied Force involving all North Atlantic Treaty Organization planes is estimated at 140,000-200,000 b/d. Normal U.S. military consumption of jet fuel in 1998 averaged 230,000 b/d.
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