Why do 58% of domestic crude produced in PADD III and 55% of net crude imports also go to PADD III imply that crude oil must move out of PADD III?

Question

Crash Overview of U.S. PADDs and Why They’re Important | RefinerLink

$\color{red}{[1.]}$ Although 49% of US refining capacity resides in PADD III, notice how 58% of domestic crude is produced in PADD III and 55% of net crude imports also go to PADD III. $\color{red}{[2.]}$ This implies that crude oil must move out of PADD III to other PADDs to remain $\color{forestgreen}{balanced}$. As a matter of fact, roughly 1.4 Million barrels a day of oil moves from PADD III to PADD II and PADD IV.

1. I don't grasp the implication. How does $\color{red}{[1]}$ above imply $\color{red}{[2]}$?

2. $\color{forestgreen}{balanced}$ with what? Why must the PADDs' crude oil be balanced?

Answer 1

The total crude throughput is domestic production plus net crude imports.

All of the crude gets refined.

So if 49% of the total crude is refined in PADD III, and more than 49% of domestic production is in PADD III, and more than 49% of net imports arrive at PADD III, It doesn't matter what the ratio of imports to domestic production is, the total amount has to be more than 49%. So crude has to be shipped out of PADD III to refiners in other PADDs.

Answer 2

I worked in petroleum my whole career and never heard this bureaucratic double speak - PADD. No real world implication, just a mechanism to justify some bureaucratic salaries.Oil is relatively fungible and the US has extensive pipeline systems and barge system and ,in a pinch, can even resort to rail.So the oil goes where someone is willing to pay.