ND1201114

Title: U.S. On Track to be Net Fuel Exporter

Description: For the first time in 62 years, the U.S. stands to export more petroleum products than it imports.

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WASHINGTON ? With rising U.S. exports of gasoline, diesel and other oil-based fuels, the nation is set to be a net exporter of petroleum products this year, the first time in 62 years that it will export more fuel than it imports, the Wall Street Journal reports.

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According to the U.S. Energy Information Administration, through the first nine months of this year, the U.S. exported 753.4 million barrels of petroleum products while importing 689.4 million barrels.

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The net exporter designation is significant as it signals a shift in the decades-old consumption imbalance, where the U.S. took in ?huge quantities? of crude oil from the Middle East and refined fuels from Europe and Latin America.

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Analysts said the trend does not appear to be fleeting, as the import imbalance has steadily shrunk over the past few years.

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?It looks like a trend that could stay in place for the rest of the decade,? said Dave Ernsberger, global director of oil at Platts, which tracks energy markets.

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The WSJ speculates the shift could eventually influence U.S. energy policy, which has been closely linked to events in the Middle East.

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The growth in exports is part of a ?transformation of the energy system,? said Ed Morse, global head of commodity research at Citigroup, Inc. ?It?s the beginning signs of a process that will continue for the next decade and will point toward energy independence.?

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U.S. demand for fuel has dropped this year, in part because of weak economic conditions that have left millions of Americans unemployed. As a result, in August of this year, U.S. drivers consumed 7.7 percent less gasoline than in August 2007, when gasoline usage peaked.

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Content Subject: Petroleum Retailing

Formatted Article Date: December 1, 2011

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