Yes, the crude oil used to make diesel is heavily drilled in America, and the U.S. actually produces far more finished diesel than it consumes. However, because oil and fuel markets operate on a global scale, the U.S. simultaneously exports massive quantities of diesel while importing smaller amounts to specific regions. [1, 2, 3]
- Production: U.S. refineries process massive amounts of crude, churning out about 4 to 5 million barrels of diesel daily.
- Consumption: The domestic market (trucking, farming, and military) only consumes around 3.6 million barrels per day. Because the U.S. refines more diesel than it can use, it relies on global trade to balance its inventory. [1, 2, 3, 4]
- The Numbers: The U.S. currently exports between 1.2 and 1.5 million barrels of diesel every single day. [1]
- Where it goes: About 60% to 70% of these exports go to Latin America (with Mexico, Chile, and Ecuador as top buyers). The remaining supply flows to Europe to help offset shortages caused by geopolitical conflicts. [1, 2, 3]
- The Gulf Coast Hub: Virtually all of this export activity happens along the U.S. Gulf Coast, which houses the deepwater infrastructure and massive refinery networks required to ship clean petroleum products abroad. [1]
- Why import? It is a logistical issue. The U.S. produces a massive surplus of diesel on the Gulf Coast, but pipeline infrastructure cannot always easily or cheaply move that fuel to the furthest corners of the country. [1, 2]
- Who buys it? Regions like New England, the Mid-Atlantic, and the West Coast frequently find it cheaper or more logistically feasible to import diesel from international partners rather than routing it from Texas. [1, 2]
- The Source: Roughly 84% of these U.S. diesel imports come directly from Canada. [1]