Net exports began declining in spring 2020 as a result of a global economic slowdown amid the spread of COVID-19.
Changes in domestic production and declines in global demand for energy since mid-March have shifted energy trade balances back in the direction of net imports, according to the EIA.
The US EIA analyses the relationship between brent crude oil prices and the index of the value of the US dollar in recent months.
Production of crude oil decreased in the United States in May 2020 by 1.99 million bpd, the largest monthly decrease since at least January 1980.
In the first half of 2020, Canada’s production declined 20% from its 2019 average of 5.5 million bpd.
Canada is the largest source of US energy imports and the second-largest destination for US energy exports behind only Mexico, according to the EIA.
The EIA forecasts that the decrease will be driven by declines in natural gas used in the industrial, commercial, and residential sectors.
The EIA forecasts US crude oil production to fall in 2020 and 2021 as efforts to mitigate the spread of COVID-19 continue to affect demand and prices.
Recent declines in demand for petroleum products have contributed to record increases in US commercial crude oil inventories.
In 2019, for the first time since 1957, energy production exceeded energy consumption in the US on an annual basis, according to the EIA’s Monthly Energy Review.