By Samuel Abasiekong-Abasiekong | November 2026 | Nigeria
The United States is indeed the world’s largest crude oil producer. It also imports crude oil despite its enormous domestic production because its refineries, crude-oil characteristics, international trade arrangements and domestic petroleum market are not perfectly aligned.
However, the claim in some quarters that America imports oil simply because its refineries cannot process its own shale oil is an oversimplification.
What Nigeria has to learn is how the United States combines oil production, refining capacity, infrastructure, private investment, regulation, taxation and public institutions to manage its resources. Find the details in this study written the Editor-in-chief of www.efeederstation.com
1. The United States is the world’s largest crude oil producer.
According to the US Energy Information Administration (EIA), the United States produced an average of 13.6 million barrels of crude oil and lease condensate per day in 2025, setting a new global record.
It has maintained its position as the world’s leading crude oil producer since 2018, when it overtook Russia.
Its production in 2025 was approximately 40 per cent higher than that of the next two largest producers, Russia and Saudi Arabia. U.S. Energy Information Administration (EIA)
2. American shale oil is predominantly light and sweet.
The claim is substantially correct.
Crude oil is classified according to its density and sulphur content.
- Light crude has a higher API gravity and generally produces more valuable lighter petroleum products.
- Heavy crude has a lower API gravity and requires more complex processing.
- Sweet crude contains relatively little sulphur.
- Sour crude contains more sulphur and requires additional treatment.
American shale production has significantly increased the availability of light, sweet crude oil.
However, it is inaccurate to suggest that all American crude oil has identical characteristics. U.S.
3. American refineries import heavier crude because of their processing configurations.
This arguments is the strongest
Many refineries, particularly along the Gulf Coast in Texas and Louisiana, have sophisticated processing equipment designed to handle heavier and more sulphur-rich crude oil.
These facilities have invested in equipment such as cokers, hydrocrackers and desulphurisation units.
Such investments enable them to extract greater commercial value from heavier crude grades.
The EIA has specifically documented the differences between crude oil processed by American refineries in different regions.
It also explains why Gulf Coast refineries have continued to rely on heavier imported crude even as domestic shale production has expanded. U.S. Energy Information
4. America exports light oil and imports heavy oil because it cannot refine its own production. This remark is incomplete because American refineries can process its domestic light crude.
Indeed, many have adjusted their operations to accommodate increased shale production.
Here, the challenge is that different refineries have different optimal crude-oil requirements.
A refinery configured to process heavy crude may not achieve the same operational efficiency or product yields when supplied exclusively with light crude.
Consequently, American petroleum companies purchase different crude grades according to refinery requirements, market prices, transportation costs and expected profitability.
This is commercial optimisation, not an inability to refine domestic oil.
It is also not necessarily a literal oil-for-oil swap. The transactions are generally separate commercial purchases and sales.
5. Rebuilding American refineries would cost hundreds of billions of dollars.
Yet converting or substantially reconfiguring an existing refinery can be expensive.
However, the cost depends on the refinery’s existing equipment, processing capacity, intended crude grades and the modifications required.
There is no basis for presenting hundreds of billions of dollars as an established nationwide cost of enabling American refineries to process domestic crude.
More importantly, America does not need to convert every refinery to process only light shale oil.
Its existing system benefits from processing a mixture of crude grades.
The figures behind America’s oil imports and exports
The distinction between crude oil and refined petroleum products is particularly important.
According to the EIA, the United States imported approximately 6.2 million barrels of crude oil per day in 2025.
It also exported approximately 4 million barrels per day.
This means it remained a net importer of crude oil, with net imports falling from 2.5 million barrels per day in 2024 to 2.2 million barrels per day in 2025. U.S
However, the bigger picture is different.
The United States exported more energy than it imported in 2025, recording a historic net energy-export surplus.
It is therefore possible for America to be a net importer of crude oil while being a net exporter of total energy and petroleum products.
The Gulf Coast is particularly important because its petroleum exports outweigh the net imports of other American regions.
This distinction is essential to understanding the American petroleum industry.
Is American petrol really around the same price as Nigeria’s?
The American Automobile Association (AAA) reported a national average regular petrol price of approximately $4.17 per US gallon on November 2, 2026. AAA Fuel Prices
One US gallon is approximately 3.785 litres.
This means the American national average was approximately $1.10 per litre.
Using the Central Bank of Nigeria’s October 30, 2026, official closing exchange rate of approximately ₦1,346.26 to the dollar, the equivalent is about:
Estimated American petrol price in Naira is
₦1,482/litre
Calculated from $4.17 per gallon and an exchange rate of ₦1,346.26/$
This is relatively close to the ₦1,400 figure quoted in the original article.
However, the comparison requires some qualifications.
American petrol prices vary considerably between states. The national average also includes applicable taxes.
Nigerian petrol prices vary between locations and marketers, and the exchange-rate conversion does not measure what petrol costs relative to the average income of citizens in either country.
Therefore, saying the two countries have broadly comparable nominal petrol prices is reasonable at the quoted figures, but it does not establish that motorists in both countries experience the same economic burden.
Do Americans receive free food, healthcare and unemployment benefits?
Food assistance: America operates the Supplemental Nutrition Assistance Program (SNAP), which provides eligible low-income households with financial assistance to purchase food.
It is not a universal food subsidy for every American.
Eligibility depends on income and other requirements. Food and Nutrition Administration
Unemployment benefits: The United States operates an unemployment insurance programme jointly administered by federal and state governments.
However, benefits are not automatically available to everyone who loses employment.
Applicants must satisfy relevant eligibility requirements, including work and wage conditions. U.S. Department of Labor
Healthcare: The United States does not provide universal, government-funded healthcare coverage to every resident.
Its healthcare system combines private insurance with public programmes such as Medicare and Medicaid.
The US Census Bureau reported that 26.7 million Americans, representing 7.9 per cent of the population, were uninsured throughout 2025.
Consequently, the assertion that American oil wealth guarantees hospitals that save every life or universal social protection is inaccurate.
Nevertheless, the country has extensive social protection programmes, public infrastructure investments and institutions that administer government services.
America versus Nigeria: Population and oil wealth
World Bank data for 2025 put the population of the United States at approximately 341.8 million and Nigeria at 237.5 million.
America therefore has approximately 1.44 times Nigeria’s population, rather than exactly 1.5 times.
But population alone does not explain the difference in public services.
The United States has a much larger and more diversified economy, a significantly higher tax base, deeper financial markets, stronger industrial capacity and a more developed system of public administration.
Oil is important to its economy, but it is not the sole foundation of its national prosperity.
Nigeria’s challenge is therefore not simply that it has fewer people or produces less oil.
It is also about how public revenue is generated, managed, invested and distributed.
Nigeria’s oil problem: The real issues behind the comparison
Nigeria is one of Africa’s major oil-producing countries, but its petroleum industry has historically struggled to translate crude oil production into reliable domestic fuel supply and broad economic benefits.
The EIA’s November 2025 country analysis estimated Nigeria’s crude oil and condensate production at approximately 1.5 million barrels per day in 2024.
It identified oil theft, security-related disruptions, ageing infrastructure, underinvestment and declining production from mature oilfields among the industry’s longstanding challenges. U.S. Energy Information Administration
The country’s refining history is equally important.
Nigeria’s four government-owned refineries have a combined installed capacity of 445,000 barrels per day.
However, the EIA’s country analysis reports that they have remained shut or largely inactive during prolonged rehabilitation and maintenance periods.
The Dangote Petroleum Refinery, with a nameplate capacity of 650,000 barrels per day, has introduced a major change to Nigeria’s refining landscape.
Nevertheless, the EIA has identified operational challenges, crude supply constraints and the need to sustain production as important issues affecting the refinery.
This raises a fundamental question: how can a country that produces crude oil still experience difficulties supplying its domestic refineries?
The answer involves production levels, crude allocation, commercial agreements, pipeline infrastructure, foreign exchange, transportation and refinery operations.
It is not simply a question of whether Nigeria has oil underground.
What Nigeria should learn from the United States
There are several important lessons from the American petroleum industry.
1. Build an efficient refining industry.
Nigeria needs functional refineries capable of processing its crude oil competitively.
Government-owned and privately owned facilities must operate efficiently, transparently and sustainably.
2. Stop treating oil production as the ultimate measure of economic success.
Producing millions of barrels daily means little to ordinary citizens if the proceeds do not translate into electricity, employment, healthcare, education and infrastructure.
3. Strengthen public institutions.
The American experience demonstrates the importance of effective regulation, transparent commercial arrangements, taxation and institutional accountability.
4. Invest oil revenue in economic diversification.
Nigeria cannot sustainably depend on crude oil exports.
Agriculture, manufacturing, technology, solid minerals, tourism and other productive sectors must receive serious investment.
5. Develop effective social protection programmes.
Nigeria needs sustainable policies that protect vulnerable households against rising food prices, unemployment, healthcare costs and transportation expenses.
Such programmes must be properly funded, transparently administered and independently monitored.
6. Make public expenditure accountable.
Oil revenues should be traceable from production and export proceeds to government budgets and completed development projects.
Citizens must be able to determine what the country earns and what it receives in return.
Nigeria’s Oil Wealth: Why America Imports Crude Oil Despite Producing More Than Any Other Country
The United States remains the world’s largest crude oil producer, yet it continues to import millions of barrels of oil annually, raising questions about the relationship between petroleum production, refining capacity and national economic prosperity.
The development has renewed discussions about why Nigeria, despite its substantial oil and gas resources, has struggled to translate its petroleum wealth into affordable energy, reliable infrastructure and improved living conditions.
According to the US Energy Information Administration (EIA), American crude oil and lease condensate production averaged a record 13.6 million barrels per day in 2025.
The United States has maintained its position as the world’s largest crude oil producer since 2018, when it overtook Russia.
Its 2025 production was approximately 40 per cent higher than that of the next two largest producers, Russia and Saudi Arabia. U.S. Energy
However, the country’s massive domestic production has not eliminated its dependence on imported crude oil.
The EIA reported that the United States imported approximately 6.2 million barrels of crude oil daily in 2025 while exporting about four million barrels per day.
This left the country with net crude oil imports of approximately 2.2 million barrels per day.
Why America imports crude oil despite massive production
One major explanation lies in the different qualities of crude oil and the technical configurations of petroleum refineries.
American shale production consists predominantly of light, sweet crude, which generally has lower sulphur content and can be processed more easily into valuable petroleum products.
However, several major refineries, particularly along the Gulf Coast in Texas and Louisiana, have sophisticated processing equipment designed to handle heavier and more sulphur-rich crude oil.
These refineries have invested in specialised equipment to extract maximum commercial value from different grades of crude.
Consequently, importing heavier crude from countries such as Canada, Mexico and some Middle Eastern producers can make economic sense.
The EIA has documented the continued importance of imported medium and heavy sour crude to American refineries.
The arrangement does not mean American refineries cannot process domestic shale oil.
Rather, petroleum companies select crude grades based on refinery configurations, processing efficiency, transportation expenses, market prices and expected profitability.
American oil companies can therefore export some domestic light crude while importing heavier varieties that better suit particular refineries.
This is a commercial decision rather than evidence of an inability to refine domestic petroleum.
America exports more energy than it imports
Another important distinction is the difference between crude oil and refined petroleum products.
Although America remains a net importer of crude oil, it has become a major exporter of petroleum products and other energy commodities.
The EIA reported that the United States recorded a historic net energy-export surplus in 2025.
Its Gulf Coast region is particularly important because petroleum exports from the area outweigh net imports across other American regions.
This demonstrates how a country can import a particular category of energy while remaining a net exporter of energy overall.
How much does petrol cost in America?
The comparison between American and Nigerian petrol prices has also attracted attention.
The American Automobile Association reported an average regular petrol price of approximately $4.17 per gallon on November 2, 2026.
Converted into litres and using the official Nigerian exchange rate of approximately ₦1,346.26 per dollar, the American price translates to roughly ₦1,482 per litre.
Although the converted figure is relatively close to the ₦1,400 cited in the circulating article, petrol prices vary across American states and Nigerian locations.
The comparison also does not account for differences in income levels, purchasing power, taxation and living costs.
America’s social protection system is not universal
The pedestrian suggestion that American oil wealth provides free food and guaranteed unemployment benefits to every citizen is inaccurate.
The United States operates SNAP, a food assistance programme for eligible low-income households.
It also provides unemployment insurance through a federal-state arrangement, subject to employment and eligibility requirements.
Its healthcare system combines private insurance and government-funded programmes.
The US Census Bureau reported that approximately 26.7 million Americans were uninsured throughout 2025.
Therefore, America still faces significant social and economic challenges despite its enormous resources. Food and Nutrition
Nigeria has a different but equally serious petroleum challenge
Nigeria’s difficulties are rooted partly in its inability to consistently maximise the value of its petroleum resources.
The country has experienced years of inadequate refining capacity, oil theft, pipeline disruptions, underinvestment and difficulties maintaining government-owned refineries.
The Dangote Refinery offers an opportunity to change that situation, but sustainable domestic crude supply, operational efficiency and competitive petroleum pricing remain essential.
The EIA identifies the country’s four government-owned refineries, with a combined installed capacity of 445,000 barrels per day, as having remained largely inactive during prolonged maintenance and rehabilitation.
The 650,000-barrel-per-day Dangote facility represents a significant addition to Nigeria’s refining capacity. U.S. Energy Information
The bigger question for Nigeria’s government
Nigeria’s population is estimated at approximately 237.5 million, compared with America’s 341.8 million in 2025.
The United States therefore has a population approximately 44 per cent larger than Nigeria’s.
However, its economic advantage extends far beyond petroleum production.
Its diversified economy, industrial development, tax revenues, financial institutions, infrastructure investments and administrative capacity contribute significantly to its ability to finance public services.
For Nigeria, the fundamental challenge is not merely producing more crude oil.
It is ensuring that petroleum wealth translates into measurable improvements in citizens’ lives.
That requires transparent management of oil revenues, functional refineries, reliable electricity, quality public healthcare, accessible education, productive industries and accountable government spending.
Ultimately, a country’s wealth should not be measured only by how much oil it produces, but by how effectively that wealth improves the lives of its people.
™️©️ Samuel Abasiekong-Abasiekong, CEO/EiC @ www.efeederstation.com
