	Introduction

Oil is a critical resource for the U.S. economy. Net oil import volumes and share of consumption peaked in 2005 and then declined through 2011 as a result of economic and policy-driven changes in domestic supply and demand. It shows U.S. oil consumption and production as well as the resulting net imports, gross imports, and exports: 
In 2011, the United States consumed 18.8 million barrels a day (Mb/d) of petroleum products, down 2 Mb/d or 9% since 2005. Gross imports are at their lowest level since 2002. Imports by Source

More than a third of U.S. gross imports came from Canada and Mexico in 2011. About 40% came from members of the Organization of the Petroleum Exporting Countries (OPEC), though most of this is from OPEC countries outside the Persian Gulf, such as Venezuela, Nigeria, Algeria, and Angola. Region

Regionally, the largest share of U.S. imports come into the Gulf Coast region, which also has about half of the refining capacity in the United States. All regions of the country import more crude than petroleum products except for the East Coast, which received petroleum products from Canada, St. Croix, Russia, Europe, and elsewhere in 2011. Oil Exports

Almost all U.S. exports are petroleum products, not crude oil, due to both policy (discussed below in " Export Restrictions on Crude Oil and Petroleum Products ") and commercial factors, particularly that the U.S. needs more crude than it produces. Exports have increased from 1.2 Mb/d in 2005 to 2.9 Mb/d in 2011. Export of gasoline has also increased. In 2011, more than 60% of U.S. exports went to countries in the Western Hemisphere. Exports occur as a result of commercial decisions by oil market participants which reflect current oil market conditions as well as past investment in refining. Net Imports Fall by 33% Since 2005

Net oil imports—gross imports minus exports—fell from a peak of 12.5 Mb/d in 2005 to 8.4 Mb/d in 2011. Looking Forward: Falling Oil Import Dependence

A consensus is emerging among energy analysts that U.S. oil imports may be past their peak, reached in 2005. This forecast would correspond to net oil imports declining from 60% of domestic consumption in 2005 to 45% in 2011 and to less than 40% after 2020. Oil, the Trade Balance, and U.S. Economy

Despite the decline in net import volumes, the cost of net imports has generally increased due to rising oil prices. The aggregate national cost of oil imports is a function of the volume of oil imported and exported and the price of that oil. The United States spent about $327 billion on net oil imports in 2011 (see Table 7 ). Being a net importer of a particular good is not necessarily negative for an economy: The United States imports many products because they would be more costly to consumers, businesses, or taxpayers were they produced domestically. Greater national oil import dependence can also amplify the negative economic impacts of oil price increases. Why Are Oil Prices Rising? Policy Considerations

Oil import and export developments pose a host of policy issues, some of which are considered below. Concerns about import dependence continue to generate interest in policy options to directly discourage imports or to reduce the need for imports by increasing domestic supply and decreasing demand. Rising exports at a time of rising prices have led to calls to restrict such trade. The debate around the Keystone XL pipeline involves concerns about both imports and exports. Also discussed is the Strategic Petroleum Reserve, created to provide a short term policy option in case of supply disruptions at home or abroad.
Over the last six years, net oil imports have fallen by 33% to average 8.4 million barrels per day (Mb/d) in 2011. This represents 45% of domestic consumption, down from 60% in 2005. Oil is a critical resource for the U.S. economy, but despite policy makers' long-standing concern, U.S. oil imports had generally increased for decades until peaking in 2005. Since then, the economic downturn and higher oil prices were a drag on oil consumption, while price-driven private investment and policy helped increase domestic supply of oil and oil alternatives. Net imports are gross imports minus exports. The decline in net imports has manifested itself as a decrease in gross imports and an increase in exports of petroleum products.
Gross U.S. imports of crude oil and petroleum products averaged 11.4 Mb/d in 2011, down 17% since 2005. More than a third of gross imports came from Canada and Mexico in 2011. About 40% came from members of the Organization for the Petroleum Exporting Countries (OPEC), mostly from OPEC members outside the Persian Gulf. Regionally, the largest share of U.S. imports come into the Gulf Coast region, which holds about half of U.S. refining capacity and sends petroleum products to other parts of the country and abroad. All regions of the country import more crude than refined products except for the East Coast, where petroleum products imports may rise further due to refinery closures.
U.S. oil exports, made up almost entirely of petroleum products, averaged 2.9 Mb/d in 2011. This is up from export of 1.2 Mb/d in 2005, led by growing export of distillates (diesel and related fuels) and gasoline. More than 60% of U.S. exports went to countries in the Western Hemisphere, particularly to countries such as Mexico and Canada from which the U.S. imports crude oil. Exports occur largely as a result of commercial decisions by oil market participants which reflect current oil market conditions as well as past investment in refining.
As a result, net oil imports fell from a peak of 12.5 Mb/d in 2005 to 8.4 Mb/d in 2011, their lowest level since 1995. A consensus is generally emerging among energy analysts that U.S. oil imports may be past their peak, reached in 2005. Imports as a share of consumption are expected to fall further, to less than 40% after 2020 driven by tighter fuel economy standards and increased domestic supply.
Despite the decline in net import volumes, the cost of net imports has increased due to rising oil prices. The aggregate national cost of oil imports is a function of the volume of oil imported and the price of that oil. The United States spent about $327 billion on net oil imports in 2011. Being a net importer of a particular good is not necessarily negative for an economy, but greater national oil import dependence can amplify the negative economic impacts of oil price increases.
Oil import and export developments pose a host of policy issues. Concerns about import dependence continue to generate interest in policy options to directly discourage imports or to reduce the need for imports by increasing domestic supply and decreasing demand. Rising exports at a time of rising prices has led to calls for policies to restrict such trade. The debate around the Keystone XL pipeline involves concerns about imports, exports, and the environment. The rising cost for fuels has led to calls for release of the Strategic Petroleum Reserve, meant to provide a short term policy option in case of supply disruptions. Policy options may entail various economic, fiscal, and environmental trade-offs.