Oil Imports Hit 8 Million Barrels a Day in January

U.S. oil imports soared to more than 8 million barrels a day in January for the first time since 1980 as demand rose sharply and domestic production continued to dwindle, an industry trade group said today.

The American Petroleum Institute, which represents major oil producers and refiners, said U.S. oil production fell to 7.9 million barrels a day, a 3.4% drop from January, 1988.

Production in Alaska, which had offset declines in other parts of the United States in recent years, slipped for the second straight month with no major new oil fields tapped, the Washington, D.C.-based group said in its monthly report.

Imports of oil surged to an average of 8.2 million barrels a day, an increase of 20.6% over the January, 1988, level of 6.8 million barrels. It was the first month that imports averaged more than 8 million barrels since 1980, the API said.

The rise in imports and drop in domestic production has raised concerns about national security and other issues regarding U.S. dependence on foreign oil and many, mostly smaller, producers have called for some form of protective legislation.

Major oil companies, meanwhile, have been directing more of their exploration and production dollars overseas where they say oil is cheaper and easier to find.