In a joint presser with the Japanese PM yesterday, the POTUS talked about Japan increasing it’s purchases of US oil and LNG, as a means to avoid US tariffs on Japanese goods. The POTUS talked about “reciprocal” trade, which I take as meaning anyone who wants to export stuff to the US, must buy an equal amount of stuff from the US.
The ban on exporting US crude was effectively repealed in 2015.
The value of Japanese imports of oil and gas exceeds the US’ trade deficit with Japan.
The value of South Korean imports of oil and gas exceeds the US’ trade deficit with South Korea.
Japan and Korea, combined, import about 5.2Mbpd of oil. US surplus production capacity, is a hair over 4Mbpd.
So, theoretically, if Japan and South Korea, were pressured by tariff threats, to make the US their preferred supplier of oil and gas, the US could balance it’s trade books with those two countries, trading oil and gas for manufactured goods.
Gov Doug Burgum gave a speech at the convention last summer about USian “energy dominance”. He is now Sec Interior, and he was at the presser yesterday.
No, the United States has a trade deficit with Japan. In 2022, the U.S. had a trade deficit of $70.3 billion with Japan. This was due to a higher value of imports ($188.8 billion) than exports ($118.5 billion).
No, the United States does not have a net trade surplus with South Korea; instead, it has a trade deficit, meaning the U.S. imports more goods from South Korea than it exports to them.
No, the United States has a trade deficit with Japan. In 2022, the U.S. had a trade deficit of $70.3 billion with Japan. This was due to a higher value of imports ($188.8 billion) than exports ($118.5 billion).
No, the United States does not have a net trade surplus with South Korea; instead, it has a trade deficit, meaning the U.S. imports more goods from South Korea than it exports to them.
I must not have expressed myself clearly. I posted the numbers in a thread last night about the “tariff tiff”. Yes, the US has a deficit with both countries. The intent appears to be to eliminate those trade deficits by requiring Japan and South Korea to buy US oil and gas.
The part about Japanese oil and gas purchases from the US, and trade “reciprocity”, starts at the 5:10 mark.
Yes, I heard that too. The important factor is this is not another daily brain fart. The scheme has been in the works a long time, like the plan for ethnic cleansing and redevelopment in Gaza.
Trump’s administration also announced it has granted conditional export authorization for a huge liquefied natural gas project in Louisiana, the first approval of new LNG exports since former President Joe Biden paused consideration of them a year ago.
In the late 70s, the US built “LOOP” to facilitate the importation of oil. The pump seal company I worked for was involved in that project. I wonder if it is possible to reverse the flow at that terminal?
Most of the US makers of API pumps, and the seal company I worked for, have been rolled into Flowserve. The stock jumped when TIG was elected, but was recently thumped on a dour outlook for 2025. But TIG’s “arty” foreign trade deals appear to be centered on making other countries close their trade gaps with the US with oil and gas purchases, so I’m thinking the outlook for O&G handling equipment is bright.
