08-08-08 Imports of crude oil are an important component of energy used in the United States, accounting for about two-thirds of total US crude oil supply in 2007. The United States increased its crude oil imports by 16 % between 1998 and 2005, when we reached a peak average daily import level of 10.13 mm bpd.
US crude oil imports have declined slightly in subsequent years, as has overall petroleum demand. Imports in 2008 for the five months ending in May are down by 3 % from the same period in 2007. In fact, imports for the month of May 2008 alone were over 6 % below May 2007.

Since 1998, the United States has diversified its supply by increasing the number of countries from which it receives crude oil imports. We received crude oil imports from 45 countries in 2007, up from 39 countries in 1998. Still, six countries continue to supply about 75 % of total US imported crude oil: Canada, Iraq, Mexico, Nigeria, Saudi Arabia, and Venezuela. Total imports from the six have remained fairly constant over the past ten years, though their individual shares of US imports have changed.
Saudi Arabia was the largest source of US crude imports from 1998 through 2003, ranging from 1.4 to 1.7 mm bpd; between 16 and 18 % of total US imports on an annual basis. However, imports from Saudi Arabia fell off in 2004 and remained below 15 % (1.5 mm bpd) through 2007. Crude oil imports from Venezuela have also trended down over the last decade and, more recently, imports from Mexico, historically between 14.4 and 16.4 % of US imports, declined to 14 % or 1.4 mm bpd in 2007.

Imports from Canada and Nigeria have increased to compensate for these reductions. Canada represented 14.5 % (1.3 mm bpd) of US imported crude oil in 1998, rising to 18.8 % (1.89 mm bpd) in 2007. As a result, Canada became the leading country of origin for US crude oil imports since 2004.
The share of oil imports from Nigeria picked up in 2004, and remained relatively constant through 2007 at just below 11 % (about 1.1 mm bpd), almost overtakingVenezuela as the fourth ranked source for US imported crude oil. While not as large as the other source countries in the top six, Iraq has consistently supplied about 5 % (0.5 mm bpd) of US crude oil imports since 2002 and is on track to provide more oil to the US in 2008.

These past trends show up in the data for the first 5 months of 2008. So far this year, the US total volume of imported crude oil has dropped, along with declining demand, in response to higher prices and a slowing economy. As a result, the countries that have increased supplies to the US are responsible for a greater share of US imported crude oil.
Canada continues to be the leading county of origin for crude oil imported into the United States. Canadian oil represented 19 % (1.89 mm bpd) of US monthly crude imports for the five months ending May 2008. Saudi Arabia ranked second, with imports from that country averaging 16 % (1.53 mm bpd) over the same period.

Mexico supplied 1.47 mm bpd of crude oil to the US on average during the first five months of 2007; however, largely due to the maturity and subsequent production declines in the Cantarell field, the volume of crude imported from Mexico during the first five months of 2008 has averaged only 1.21 mm bpd, a drop of 18 %.
Crude oil imports from Venezuela during the first five months of 2008 are down 10 % from the same period in 2007. As a result, Venezuela's share of total US imports declined to 10.2 % this year through May. Venezuelan declines may stem from increased exports to other countries or from lagging domestic production, or some combination of these factors. Regardless, the reduction set the stage for Nigeria to overtake Venezuela as the fourth largest source of supply for imported crude oil on average so far this year.

Nigerian supply constituted 10.8 % of the total US imports for the five months ending May 2008. Imports from Nigeria averaged 1.05 mm bpd between January and May 2008, essentially equal to that for the same five months ending May 2007.
Although Iraqi supplies averaged only 0.67 mm bpd between January and May 2008, this level represented a 47 % increase over the five months ending May 2007. Iraqi supplies represented almost 7 % of the total US crude oil imports for the five months ending May 2008.

In summary, over the past decade, the US has increased the total number of countries from which it receives crude oil imports, but six countries continue to supply approximately 75 % of imported crude oil used in domestic refineries.
The overall share of crude oil from the Americas is declining slightly, as losses from Venezuela and Mexico have not been replaced entirely by Canada. Increased supplies from Nigeria and Iraq, as well as sources that have traditionally represented smaller supply shares such as Algeria, Russia, and Brazil, have helped to meet US import needs.