exports

High U.S. oil exports the new normal under right conditions

17 Nov 2017   exports, USA

The sale of oil from the Bakken shale basin in North Dakota is in fact a “new reality,” so long as market conditions are right, an analyst said. U.S shale player Continental Resources announced late Wednesday it plans to sell 430,000 barrels of oil for January delivery to a trading company that “intends” to export it to China. It’s the second such sale announcement made by the company in a month. “International markets are demonstrating accelerated interest in American light sweet oil, and Continental is currently negotiating additional potential sales,” Chairman and CEO Harold Hamm said in a statement. “This is the new reality of the United States as a world energy leader.” U.S. refineries aren’t configured to handle large volumes of […]

The U.S. Export Boom Goes Beyond Crude

10 Nov 2017   exports

The U.S. export boom continues apace. And not only from crude exports, which clambered above 2 million barrels per day in recent weeks, but from the product piece of the pie too. Joining rising gasoline and distillate exports from the U.S. has been LPG. And not just propane or butane, but ethane as well – as our ClipperData illustrate below. With the start up of Enterprise’ Morgan’s Point terminal on the Gulf Coast last year, as well as Sunoco’s Marcus Hook terminal on the East Coast, ethane exports have gradually risen from averaging just under 30,000 bpd in Q3 of last year to nearly 140,000 bpd in Q3 just passed. Ethane production in the U.S is expected to average ~1.45 million bpd this year , up from 1.25 million bpd last year. It is set to maintain its upward trajectory in the coming years, driven by higher domestic consumption […]

This Could Supercharge The U.S. Oil Exports Boom

8 Nov 2017   exports, USA

All the oil headlines this week are rightly focused on prices spiking to the highest levels in more than two and a half years. But Brent moved up to nearly a $7-per-barrel premium over WTI, a spread that is also at a multiyear high. The wide differential could supercharge crude oil exports from the U.S., which have already recently broken all-time highs. Before the U.S. lifted the crude oil export ban at the end of 2015, WTI often traded at a significant discount to Brent. Much of that had to do with surplus supply trapped within the continent, as well as a shortage of pipeline capacity in certain areas of the U.S., meaning that surging shale output resulted in localized gluts. That spread just about disappeared over the course of 2015 and 2016, with the two benchmarks moving nearly in lock step. However, at the end of August 2017, […]

U.S. oil exports boom, putting infrastructure to the test

30 Oct 2017   exports

Tankers carrying record levels of crude are leaving in droves from Texas and Louisiana ports, and more growth in the fledgling U.S. oil export market may before long test the limits of infrastructure like pipelines, dock space and ship traffic. U.S. crude exports have boomed since the decades-old ban was lifted less than two years ago, with shipments recently hitting a record of 2 million barrels a day. But shippers and traders fear the rising trend is not sustainable, and if limits are hit, it could pressure the price of U.S. oil. How much crude the United States can export is a mystery. Most terminal operators and companies will not disclose capacity, and federal agencies like the U.S. Energy Department do not track it. Still, oil […]

Crude oil and petroleum product exports reach record levels in the first half of 2017

20 Oct 2017   exports, USA

 Crude oil exports in the first half of 2017 increased by more than 300,000 barrels per day (b/d) from the first half of 2016, reaching a record high of 0.9 million b/d. Petroleum product exports also grew over the same period with propane and distillate exports reaching record highs of 0.9 million b/d and 1.3 million b/d, respectively. Following the removal of restrictions on exporting U.S. crude oil in December 2015, total volumes of crude oil exports and the number of destinations for those exports both increased. The United States exported crude oil to 27 countries in the first half of 2017 compared with 19 countries in the first half of 2016. Canada remained the largest recipient of U.S. crude oil exports at 307,000 b/d, but imported an average of 63,000 b/d less compared with the first half of 2016. China […]

Higher U.S. exports draining storage levels

20 Oct 2017   exports, USA

An increase in crude oil exports, which reached an all-time high, helped lead to the decline in storage levels for the U.S. market, data analysis show. Data from the U.S. Energy Information Administration, published Wednesday , show oil exports averaged 1.6 million barrels per day over the last four weeks, a span than included the all-time high of 1.9 million bpd for the week ending Sept. 29. The four-week moving average for exports last year was 467,000 bpd. Geoffrey Craig, oil futures editor for commodity pricing group S&P Global Platts, said in an after-market commentary that U.S. oil exports were supported by the discount for West Texas Intermediate, the U.S. benchmark for the price of oil, […]

Asia oil buyers turn to U.S. in hunt for cheap supply

16 Oct 2017   East Asia, exports, USA

Asia is set to ramp up crude oil imports from the United States in late 2017 and early next year, with buyers searching out cheap supplies after hurricanes hit U.S. demand for the commodity at a time of rising production in the country. As many as 11 tankers, partly or fully laden with U.S. crude, are due to arrive in Asia in November, with another 12 to load oil in the United States later in October and November before sailing for Asia, according to shipping sources and data on Thomson Reuters Eikon. U.S. West Texas Intermediate crude benchmark stands at its largest discount in years against the Atlantic Basin’s Brent, with local appetite curbed as U.S. refineries are still pushing to get back on track in the […]

Who Are The Biggest Buyers Of U.S. Oil?

16 Oct 2017   exports

This year the U.S. has averaged more than 900,000 barrels per day (BPD) of crude oil exports while continuing to import an average of 8.1 million BPD. In the previous article , I discussed the reasons the U.S. exports oil, despite the fact that we are still a significant net importer of crude oil. In a nutshell, the quality of the oil that is being exported is often a better fit for foreign refineries than the oil that is imported. It may also be logistically preferable to ship domestic oil to certain foreign refineries. From 1975 until late 2015, a crude oil export ban restricted crude oil exports from the U.S. to all countries besides Canada. In the years leading up to the U.S. shale oil boom, the U.S. was exporting less than 30,000 BPD to Canada. By 2013, crude oil exports to Canada had jumped to 134,000 BPD. […]

Oil Trading Firm Expects Unprecedented U.S. Crude Exports

14 Oct 2017   exports, USA

U.S. crude oil exports hit an all-time high at the end of September, and are poised to surge even more to hit unprecedented levels in the coming two or three weeks, Marco Dunand, chief executive of trading house Mercuria, told the Reuters Global Commodities Summit on Friday. U.S. crude oil exports hit a record-high of 1.98 million bpd in the week to September 29, EIA data showed. This was the highest weekly average since the U.S. removed restrictions on crude oil exports at the end of 2015, after a four-decade ban. Oversupply due to Harvey drove the higher exports, but most of all, it is the wide spread of around $6 between WTI and Brent prices that drives buyers to lust after the cheaper U.S. crude grade. The spread is also wide enough to offset shipping costs to destinations like Asia and Europe. Mercuria’s Dunand thinks that the excess […]

Record U.S. Crude Exports Squeeze North Sea Oil

11 Oct 2017   exports, USA

Record-high U.S. crude oil exports are putting pressure on North Sea oil as American oil is now flowing to Europe and to the prized Asian market, which has become increasingly important for determining North Sea oil prices and the Brent benchmark. U.S. crude oil exports hit a record-high of 1.98 million bpd in the week to September 29, EIA data showed last week. This was the highest weekly average since the U.S. removed restrictions on crude oil exports at the end of 2015, after a four-decade ban. Last week’s figure also beat the previous record set by U.S. exporters, which was hit in the previous week, at 1.5 million bpd. Oversupply due to Harvey drove the higher exports, but most of all, it is the wide spread of around $6 between WTI and Brent prices that drives buyers to lust after the cheaper U.S. crude grade. The spread is […]

Expect more U.S. oil on the global market

11 Oct 2017   exports, USA

U.S. crude oil exports will likely increase in part because of the discount for the U.S. benchmark price for oil against other grades, an industry report found. An emailed market report from Bank of America- Merrill Lynch this week said the spread, or difference, between West Texas Intermediate, the U.S. benchmark for the price of oil, and Brent, the global benchmark, made U.S. crude competitive on the open market. A 40-year-old ban on U.S. crude oil exports ended in the waning years of President Barack Obama ‘s tenure. During his term, Republican lawmakers helped broker an end to the ban enacted in the 1970s in response to an oil embargo embraced by some members of the […]

The Geopolitical Consequences Of U.S. Oil Exports

9 Oct 2017   exports

Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk management, emerging market economic development, and market risk assessment. His… The first you may have noticed – oil prices moved back up. As for the second, most so-called “experts” seemed to have missed. See, the environment we’re seeing in energy markets is very different from what we saw only a week ago, when oil prices were also rising. Because yesterday also saw – for the first time in world history – a reigning Saudi Arabian monarch in Moscow for talks with Russia’s head of state. Historically, Russia has been much closer to Iran – Saudi Arabia’s main regional enemy. Now, King Salman and President Putin are expected to endorse the plan to extend the OPEC-Russia deal to cut oil production and boost prices beyond the current end date of March 2018. But that’s not […]

Where The U.S. Exports Oil And Petroleum Products

7 Oct 2017   exports

An oil refinery is shown near Houston following Hurricane Harvey August 30, 2017 in Houston, Texas. Texas refineries have become an important source of petroleum product exports for countries like Mexico. (Photo by Win McNamee/Getty Images) This year the U.S. has averaged more than 900,000 barrels per day (BPD) of crude oil exports while continuing to import an average of 8.1 million BPD. In the previous article , I discussed the reasons the U.S. exports oil, despite the fact that we are still a significant net importer of crude oil. In a nutshell, the quality of the oil that is being exported is often a better fit for foreign refineries than the oil that is imported. It may also be logistically preferable to ship domestic oil to certain foreign refineries. From 1975 until late 2015, a crude oil export ban restricted crude oil exports from the U.S. […]

U.S. fuel exports recover after Harvey, offering buyers respite

28 Sep 2017   exports, USA

Fuel exports from the U.S. Gulf Coast are rising rapidly as refineries recover from weeks of disruptions due to Hurricane Harvey, offering respite to buyers in Latin America and Europe. The gradual resumption of operations in the region that has become a major oil export hub has prompted a drop in benchmark gasoline and diesel refining margins on both sides of the Atlantic. Margins measure the profit from converting crude into fuels. Mexico’s state-run oil company Pemex bought gasoline cargoes from the U.S. Gulf Coast this week, according to shipping data, after sourcing dozens of cargoes from Europe, the Middle East and Asia through the month. Mexico, which relies on imports for half of its gasoline consumption, typically buys two cargoes of the road fuel per day, mostly from the U.S. Gulf Coast. U.S. outages came at a particularly difficult moment for Mexico as its largest […]

U.S. crude exports to Asia may shake up global oil pricing: Russell

27 Sep 2017   Asia, exports, USA

The great disruptor that is U.S. shale oil is coming to Asia, as refiners in the energy-hungry region look to expand and diversify their sources of crude, and the consequences will likely go well beyond a shift in oil trade flows. It should come as no surprise that rising oil output in the United States would find its way to the region that is the world’s fastest-growing consumer of the fuel, but perhaps the rapid pace of the shift has caught some in the market off-guard. Crude oil exports to Asia from the United States are still relatively small-scale, with Thomson Reuters Oil Research and Forecasts estimating flows of around 261,000 barrels per day (bpd) in the first eight months of the year. However, this […]

U.S. oil exports to meet 5 percent of non-U.S. global demand by 2022

25 Sep 2017   exports, USA

Crude oil exports from the United States will increase to meet 5 percent of global demand by 2022, as refiners seek more low-sulfur crude to meet stricter rules for cleaner fuels, an executive from Enterprise Partners LP said on Monday. U.S. oil exports may rise to about 4 million barrels per day (bpd) by 2022, a four-fold jump from this year, said Brent Secrest, a senior vice president at Enterprise Products. During that same period, global oil demand, excluding the U.S., may rise to as much as 73 million bpd, up from 65 million bpd currently, he said. Demand for light, low-sulfur, or sweet, crude is set to rise as countries push refiners to produce cleaner fuels, as highlighted by the Internationals Maritime Organization’s (IMO) new rules to cut the sulfur content in the fuel used in large container ships, or bunker fuel, by 2020. “The […]

Expect A Major Leap In U.S. Oil Exports

22 Sep 2017   exports

The Gulf Coast was ravaged by Hurricane Harvey, and the effects are going to take time to wear off, but the situation has also made U.S. crude exports much more competitive. Harvey knocked out more than 4 million barrels per day (mb/d) of refining capacity for a few days, but three weeks on from the storm, there is still some refining capacity offline. As of September 19, an estimated 15 of the 20 refineries affected in Texas and Louisiana were back to normal production, or close to normal production, according to IHS Markit . Another four were planning to restart operations. But that does not mean that all is well. For example, the U.S.’ largest refinery, the Motiva facility in Port Arthur, is still producing below capacity . Valero’s Port Arthur refinery caught fire earlier this week, an example of the perils of restarting a major refinery. ExxonMobil’s Baytown […]

Cheniere’s Sabine Pass receives first LNG tanker since Harvey

7 Sep 2017   exports

Cheniere Energy was preparing Wednesday to ship its first LNG export cargo from its Sabine Pass terminal in Louisiana since Harvey came ashore along the Gulf Coast as a powerful hurricane almost two weeks ago. The Rioja Knutsen tanker was allowed to dock at the terminal in Cameron Parish after being held in a holding pattern with numerous other vessels in the Gulf of Mexico due to strong currents and high water levels in the Intracoastal Waterway that feeds the facility. “We managed to sneak her in today, barely,” said Daniel Dubois, chief dispatcher for Sabine Pilots, which navigates vessels along the channel. “We’re probably not going to do another one until she sails. The conditions aren’t exactly favorable.” Extra tugboats were required to guide the Rioja Knutsen to the Cheniere dock safely, Dubois said. If loaded immediately, it could depart as early as Thursday, he said. A Cheniere […]

Trump renews threat to scrap NAFTA going into next round of talks

28 Aug 2017   exports

U.S. President Donald Trump renewed his threat to scrap NAFTA and ripped on trading partners Canada and Mexico in a tweet early on Sunday, days before the three countries were scheduled to hold a second round of negotiations on rewriting the 23-year-old agreement. “We are in the NAFTA (worst trade deal ever made) renegotiation process with Mexico & Canada. Both being very difficult, may have to terminate?” he wrote. Trump, a Republican, promised during his campaign to overhaul or eliminate the North American Free Trade Agreement, which he cast as killing jobs and exacerbating the U.S. deficit, and to adopt a more protectionist stance for trade generally. The first five-day round of talks between the three countries concluded last […]

This Critical Oil Price Divergence Could Boost US Exports

23 Aug 2017   exports, Prices, USA

The gap between the two most important oil benchmarks has widened recently, a symptom of the shifting oil supply/demand dynamics between the U.S. and the rest of the world. For the past few years, Brent and WTI have traded very closely together, as both benchmarks reflect the crushing weight of oversupply. Prior to the market downturn in 2014, the spread between the two benchmarks was dictated much more by geopolitical whims. Brent, which reflects market conditions in Europe, the Middle East, Africa and parts of Asia – in essence a more internationally-oriented marker – rose and fell more sharply on geopolitical events. WTI, on the other hand, closely tracked U.S. conditions. The dynamics were most visible during the Arab Spring back in 2011, when oil prices around the world spiked. The oil market was already tight, and fears of supply outages – and not just fears, but real outages, […]

Texas sees Mexico as important gas export market

23 Aug 2017   exports, Mexico, USA

The state economy for Texas is capitalizing on cross-border movements of natural gas to Mexico, a director at a state energy regulator said. Texas Secretary of State Rolando Pablos served as the moderator of a bilateral energy forum that counted members of a Mexican energy trade association and Mexico Energy Regulatory Commissioner Guillermo Garcia Alcocer among its panelists. The panel came one month after Mexico’s government held its first auction to access capacity to natural gas infrastructure as part of the country’s sweeping energy reforms. Those reforms could bring in up to $415 billion in investments over the next 20 years as the country establishes links to the rest of the world. Ryan Sitton with the Texas Railroad Commission, the state’s […]

As U.S. Exports Gas to Europe, Russia Digs In

21 Aug 2017   exports, LNG

U.S. attempts to export natural gas into Europe’s energy market are facing stiff resistance from the region’s dominant player: Russia.  A tanker is scheduled to arrive in Lithuania this week carrying the first shipment of U.S. liquefied natural gas to a former Soviet republic. It follows a handful of other shipments of U.S. gas to Europe and comes in the wake of widespread predictions that American exports would help break Russia’s dominance of the European energy market.  But Russia is moving quickly to contain the new competition to its largest energy market. Its state-run energy companies are lowering prices, changing sales methods and developing their own LNG facilities. Moscow is also pushing ahead with a pipeline opposed by both Washington and Brussels.

While European governments are eager to reduce Russia’s chokehold, and its resulting political leverage, the region’s consumers are looking beyond politics for the lowest prices. That favors Russia. Last year, Russia exported record levels of gas to Europe, helped by lower prices and falling domestic production elsewhere in Europe.  “We are tracking the situation on the global gas market and the growth of U.S. shale gas production,” Russia’s energy minister, Alexander Novak, said in an interview last month. “Recently we have allocated a lot of efforts to boost our presence on the LNG market.”

U.S. gasoline exports overshadow strong production

18 Aug 2017   exports

The production of gasoline in the United States is near a record high, though supply levels are under pressure from exports, a federal report said. “Gasoline production by U.S. refiners and blenders has run near record levels over the first seven months of 2017, with four-week rolling average production well above its five-year average and close to the top of its five-year range,” a daily brief from the U.S. Energy Information Administration read. Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.34 for Thursday, about 2 cents less than one week ago. The summer travel season in the United States, which runs through […]

United States expected to become a net exporter of natural gas this year

11 Aug 2017   exports

EIA’s latest Short-Term Energy Outlook projects that the United States will export more natural gas than it imports in 2017. The United States has been a net exporter for three of the past four months and is expected to continue to export more natural gas than it imports for the rest of 2017 and throughout 2018. The United States’ status as a net exporter is expected to continue past 2018 because of growing U.S. natural gas exports to Mexico, declining pipeline imports from Canada, and increasing exports of liquefied natural gas (LNG). The United States is currently the world’s largest natural gas producer , having surpassed Russia in 2009 . Natural gas production in the United States increased from 55 billion cubic feet per day (Bcf/d) in 2008 to 72.5 Bcf/d in 2016. Most of this natural gas—about 96% in 2016—is […]

The Next Big Catalyst In The U.S. Oil Export Boom

27 Jul 2017   exports, USA

The Louisiana Offshore Oil Port plans to start exporting crude by early next year, in the latest indication there’s an oil export boom in the world’s top oil consumer. According to media reports citing an emailed LOOP statement, the private company operating the port is currently looking for potential producers interested in shipping their crude from LOOP. LOOP is certainly not the only port eyeing exports as shale output continues to grow. Yet it is the deepest one: it is the only port on the U.S. Gulf Coast capable of handling Very Large Crude Carriers, or VLCCs, which have a capacity of up to 2 million barrels of crude. As we noted earlier, the Gulf Coast is bustling with port-expansion activity as producers rush to send their crude overseas. Until relatively recently, the Port of Houston was where all the oil action in Texas took place. Now, things are […]

Why record U.S. oil exports are poised for even more growth

27 Jul 2017   exports, USA

U.S. refineries are producing more fuel than ever as they seek to meet rising demand – from overseas, rather than the drivers on nearby roadways. Last year, the U.S. became the world’s top net exporter of fuel, an outgrowth of booming domestic production since the shale oil revolution started in 2010. That’s a fundamental shift from the traditional U.S. role in global markets as a top importer and consumer. Net exports are on track to hit another record in 2017, making foreign fuel markets increasingly important for the future growth prospects and profit margins of U.S. refiners. Shale oil producers have provided refiners with abundant and cheap domestic crude supplies, giving them the raw material they need to produce internationally competitive fuel. The nation set a record in 2016 by sending a net 2.5 million barrels per day (bpd) of petroleum products to foreign markets. […]

US crude exports are the gift that keeps on giving: Fuel for Thought

18 Jul 2017   exports, USA

Share Favorable price differentials are leading to growing US crude exports from the Gulf Coast, which in turn is helping to fuel an infrastructure buildout that will encourage even more exports and new entrants into the US market. Crude oil exports have increased recently amid widening discounts for both WTI Midland and WTS (West Texas Sour) Midland. So far in July, the average discount of WTI Midland was WTI cash minus $1.05/b, down 21 cents from June. WTS Midland discounts over the same time have fallen to WTI cash minus $1.18/b, down 9 cents, according to Platts data. A wider discount makes grades like WTI and WTS more attractive to export. Arbitrage economics have been reinforced by a widening WTI/Dubai spread. Month on month, the swap spread between WTI and Dubai widened 20 cents/b to $1.22/b last week. As this spread widens, WTI-based crudes like Bakken become more economic […]

Oil imports help feed US export powerhouse

17 Jul 2017   exports, USA

The US oil industry is rapidly turning the country into an energy export powerhouse, tipped last week by one prominent consultancy to start shipping more oil overseas than the majority of Opec countries by 2020. But this export flurry, brought on by the rejuvenation of the shale oil revolution and the lifting of decades-old export restrictions, has a flip side: as more oil flows out of the US more is also flowing in. In the first six months of 2017, as US crude exports have at times crested 1m barrels a day, imports of crude oil US have risen 5 per cent, or more than 300,000 b/d, compared with the same period last year. The data, from the US Energy Information Administration, illustrate that, while rising US exports are often portrayed as a straightforward threat to Opec, the emerging reality is more nuanced. The US remains the world’s biggest consumer of crude, burning almost 20m b/d, or more than one in every five barrels globally. As one of the world’s biggest importers of crude, even though domestic supplies are rising, domestic oil refiners will need to source alternatives from elsewhere if they are to pursue large-scale exports. “Ships will start passing in the night again,” said Stephen Wolfe, US analyst for Trafigura, the Swiss-based independent trading house that has been one of the largest shippers of US crude overseas. “With more barrels going out you need more coming in.” About two-thirds of the rise in US imports this year has come from Canada, where investments made in the oil sands region before prices fell from more than $100 a barrel in early 2014 to less than $50 a barrel today, have led to rising supplies of heavy bitumen-like crude.

US crude exports are the gift that keeps on giving: Fuel for Thought

17 Jul 2017   exports, USA

Share Favorable price differentials are leading to growing US crude exports from the Gulf Coast, which in turn is helping to fuel an infrastructure buildout that will encourage even more exports and new entrants into the US market. Crude oil exports have increased recently amid widening discounts for both WTI Midland and WTS (West Texas Sour) Midland. So far in July, the average discount of WTI Midland was WTI cash minus $1.05/b, down 21 cents from June. WTS Midland discounts over the same time have fallen to WTI cash minus $1.18/b, down 9 cents, according to Platts data. A wider discount makes grades like WTI and WTS more attractive to export. Arbitrage economics have been reinforced by a widening WTI/Dubai spread. Month on month, the swap spread between WTI and Dubai widened 20 cents/b to $1.22/b last week. As this spread widens, WTI-based crudes like Bakken become more economic […]

US crude exports forecast to exceed most Opec members by 2020

11 Jul 2017   exports, USA

The US will quadruple its crude oil exports to volumes greater than those of most Opec members within three years, an influential consultant has forecast, as Texas producers seek customers for seemingly unstoppable supplies. By 2020, exports of US crude would reach 2.25m barrels per day, according to PIRA Energy. By comparison, last year Kuwait exported 2.1m b/d, Nigeria 1.7m b/d and the US itself 520,000 b/d. The forecast suggests the Opec exporters’ cartel faces a drawn-out struggle as it tries to raise crude prices by curtailing output in the face of a prolific US shale oil industry. “The US will become one of the top 10 exporters in the world,” said Gary Ross, PIRA’s global head of oil. “They’re not a member of Opec, and they’re not about to control production in an effort to keep prices up. This is very bad news for Opec.” The US prohibited most exports of crude oil until late 2015, when Barack Obama signed legislation overturning the 40-year-old ban. Since then, American barrels have been flowing to new markets such as Europe and China. The Trump administration has embraced the trend as it pursues a vision of “energy dominance.”

U.S. crude oil exports in May reached 1.02 million bpd: U.S. Census Bureau

7 Jul 2017   exports, USA

U.S. crude oil exports reached 1.02 million barrels per day in May, slightly higher than the 1.00 million bpd in April, foreign trade data from the U.S. Census Bureau showed on Thursday Exports to Canada were 372,000. Exports to China were 147,000. Exports to Netherlands were 108,000. Exports to Malaysia were 68,000. Exports to United kingdom were 63,000. Exports to Colombia were 48,000. Exports to Curacao were 32,000. Exports to Peru were 25,000. Exports to Bahamas were 23,000. Exports to Spain were 23,000. Exports to Norway were 22,000. Exports to Italy were 22,000. Exports to France were 21,000. Exports to Korea, south were 16,000. Exports to Dominican republic were 16,000. Exports to Japan were 10,000. Exports to Argentina were 9,000. U.S. Census’s foreign trade oil data is published weeks earlier than closely watched U.S. Energy Information […]

Oil Exports, Illegal for Decades, Now Fuel a Texas Port Boom

6 Jul 2017   exports, USA

In a twist that would have been unthinkable only two years ago, the oil tanker that arrives in China today may be carrying crude that left the South Texas port of Corpus Christi instead of Saudi Arabia. Chinese drivers most certainly don’t care where their fuel comes from, but the export of American crude oil to dozens of countries over the last year is the latest chapter in a remarkable turnaround for the American oil and gas industry, about the only good news in three years of plummeting commodity prices, bankruptcies and layoffs. For 40 years it was virtually impossible to sell American oil to any country except Canada because of an export ban that was a bedrock of United States energy policy. The Obama administration slowly loosened the ban and Congress finally ended it in late 2015 in a compromise that also extended tax […]

U.S. exports of crude oil and petroleum products have more than doubled since 2010

29 Jun 2017   exports, USA

U.S. crude oil and petroleum product gross exports have more than doubled over the past six years, increasing from 2.4 million barrels per day (b/d) in 2010 to 5.2 million b/d in 2016. Exports of distillate, gasoline, propane, and crude oil have all increased, but at different paces and for different reasons. Restrictions on exporting domestically produced crude oil were lifted in December 2015, and in 2016, the United States exported an average of 520,000 b/d. U.S. crude oil exports reached 1.1 million b/d in February 2017, the highest monthly level on record. While Canada remains the largest destination for U.S. crude oil exports, Canada’s share of total U.S. crude oil exports has declined, dropping from 92% in 2015 (427,000 b/d) to 58% in 2016 (301,000 b/d). Other leading […]

Welcome to the Booming Texas Port at Heart of U.S. Oil Sales

27 Jun 2017   exports

Dredging to boost export capacity to 3 million barrels a day New pipelines set to increase supply moving out of South Texas Late last month, an oil tanker that measures three football fields long and six stories high moved slowly through the port of Corpus Christi, Texas, to test the waters of America’s booming crude-export industry. After navigating the Aransas pass around 7 a.m. on May 26, the vessel, Euronav NV ’s Anne, didn’t pick up any oil. But its arrival in the humid air of South Texas marked the first time ever a tanker of that size had called on a U.S. terminal in the Gulf of Mexico. The Anne docked at Occidental Petroleum Corp. ’s terminal to determine if some of the world’s biggest carriers could start ferrying oil from Texas to foreign buyers. The shipping upgrade is necessary after a surge in production from U.S. shale […]

Asserting ‘dominance,’ Trump seeks boost for U.S. energy exports

27 Jun 2017   exports

President Donald Trump gives a thumbs up as he walks up the West Wing colonnade to greet India’s Prime Minister Narendra Modi as Modi arrives for a visit in Washington. President Donald Trump on Thursday will lay out his plan for reducing regulations to boost already-abundant U.S. production of oil, natural gas and coal and export it around the world, creating American jobs and helping allies. Trump will deliver an address on his administration’s new mantra of “energy dominance” at the Energy Department, officials told reporters. They declined to give details on how he would tweak existing regulations that have not stopped a surge in exports. “We’ve gone from the age of scarcity now to the age of abundance when it comes to American energy,” Mike Catanzaro, a White House energy policy aide, told reporters. “We want to use those abundant resources for good here at home and for […]

What’s Wrong With The U.S. Oil Export Boom

20 Jun 2017   exports, USA

The lead editorial in Friday’s Wall Street Journal was pure energy nonsense.’ “ Lessons of the Energy Export Boom ” proclaimed that the United States is becoming the oil and gas superpower of the world. This despite the uncomfortable fact that it is also the world’s biggest importer of crude oil. The Journal uses statistical sleight-of-hand to argue that the U.S. only imports 25% of its oil but the average is 47% for 2017. Saudi Arabia and Russia–the real oil superpowers–import no oil. The piece includes the standard claptrap about how the fracking revolution has pushed break-even prices to absurdly low levels. But another article in the same newspaper on the same day described how producers are losing $0.33 on every dollar in the red hot Permian basin shale plays. Oops. The main point of the editorial, however, is to celebrate a surge in U.S. oil exports to almost […]

Analysis: Rising US crude oil exports complicate rebalancing efforts

17 Jun 2017   exports, USA

One reason for the bearish narrative gripping the oil market of late has been that draws in US crude stocks have essentially come at the expense of the rest of the world. US crude exports have surged this year — averaging more than 1 million b/d in April, the second most on record — driven by the significant discount of US crude prices relative to global benchmarks. The weakness of ICE Brent’s term structure compared with NYMEX crude can be seen as a symptom of the glut that has been exported out of the US to the rest of the world that, in turn, has weighed on the oil complex. The recent plunge in oil prices that began May 25 saw crude futures drop roughly $7/b through last week, while the contango widened across time maturities for ICE Brent and NYMEX crude. Moreover, the contango for ICE Brent has […]

Record Breaking U.S. Exports Could Hurt Oil Markets

12 Jun 2017   exports, Prices, Shale Oil

U.S. exports have spiked in recent weeks, upending longstanding trade flows. But while that may be good news for some U.S. drillers, the unusually high level of crude exports are not obviously a good sign about the health of the oil market. At the same time, it is not guaranteed that U.S. producers will be able to continue to ship oil abroad at such a high rate for very long. U.S. oil producers were prohibited from exporting crude oil for decades until Congress scrapped the ban at the end of 2015. For much of last year, exports only rose slightly. But that changed in 2017 – U.S. crude oil exports topped 1 million barrels per day (mb/d) several times in recent weeks, double the rate from a year earlier. (Click to enlarge) The exports provide an outlet for shale drillers but they also put pressure on the global oil […]

U.S. crude oil exports went to more destinations in 2016

29 Mar 2017   exports, USA

U.S. crude oil exports averaged 520,000 barrels per day (b/d), 55,000 b/d (12%) above the 2015 level, despite a year-over-year decline in domestic crude oil production. Even though oil exports have increased, growth in U.S. crude oil exports has slowed significantly from its pace from 2013 to 2015, when annual U.S. crude oil production grew rapidly. Following the removal of restrictions on U.S. crude oil exports in December 2015, the United States exported crude oil to 26 different countries in 2016, compared with 10 countries the previous year. In 2015, 92% of U.S. crude oil exports went to Canada, which was exempt from U.S. crude oil export restrictions. After restrictions were lifted, Canada remained the top destination but received only 58% of U.S. crude exports in 2016. Aside from Canada, European destinations such as the Netherlands, Italy, United Kingdom, […]

U.S. crude oil sales to Asia quickly growing

11 Mar 2017   exports

The growing influence of U.S. crude oil exports to Asia was a topic at a recent oil conference in London. It had been 40 years since crude oil was exported from the United States to points outside North America. Export restrictions were repealed in 2015. Virtually no crude oil was sent to Asia in 2015, but between January and November 2016 the figure rose to 50,000 barrels per day, U.S. Energy Information Administration figures said. Exports to Singapore, China, Japan, Thailand and South Korea have already grown in 2017 as well. Demand for benchmark West Texas Intermediate crude oil is now about 14 percent […]

Oil Trader Vitol Sees `a Lot More’ Growth in U.S. Crude Exports

10 Mar 2017   exports

Vitol Group BV , the trader that shipped the first cargo of U.S. crude after export restrictions ended in late 2015, predicts the country’s oil exports will grow “a lot more” because of rising production in Texas. U.S. crude shipments briefly surged to a record 1.21 million barrels a day in mid-February, up from 32,000 in 2010, when most of the country’s production couldn’t be sold overseas because of a 40-year-old ban. “We will see a lot more growth in U.S. crude exports,” Mike Loya, the head of Vitol in the Americas, said in an interview in Houston. Loya, a 25-year Vitol veteran, said that oil production in the Permian shale, which extends from western Texas into southeast New Mexico, will rise by 600,000 to 700,000 barrels a day in the year through December. “A lot of that is going to be exported,” he said. The export boom is […]

U.S. Refiners Look Abroad As Domestic Competition Increases

10 Mar 2017   exports

U.S. oil refiners are going global. That’s the message that has been coming from the industry over the past year when a lot of refining capacity abroad was shut down for various reasons, making way for imports from the U.S. Bloomberg reports that in 2016, American companies exported 3 million barrels of refined petroleum products daily – a record high – and sector players seem determined to continue expanding their export capacity. Exxon, for example, recently announced a $20-billion investment program for the Gulf coast, to consist of refining and petrochemical production facilities and infrastructure. The output is planned to be exported. Exxon is far from alone in this. According to Bloomberg, many are looking abroad for new markets to take advantage of the cheap supply of crude and gas domestically, which makes the product more competitive internationally. For now, however, refiners seem to be focusing mainly on Mexico, […]

US crude exports hit record levels in January, February

9 Mar 2017   exports, USA

US crude exports hit record highs in January and February, as domestic crude price discounts to Brent and Dubai widened significantly, an S&P Global Platts analysis of government data showed Tuesday. US Census Bureau data showed US crude exports rising by 304,000 b/d to 746,000 b/d in January, which was followed by a report by the US Energy Information Administration showing US crude exports averaging 900,000 b/d in the four weeks ending February 24. Congress’ December 2015 decision to lift restrictions inaugurated a new era in US oil trade, with exports averaging an annual record of 521,000 b/d in 2016. Additionally, rising production from the Permian Basin in West Texas, in combination with a significant buildout in infrastructure to access export markets, has deepened price discounts for US light sweet crudes, allowing US crude exports to take off. “It’s pure economics,” said Tony Starkey, manager of energy analysis at […]

U.S. Oil Snares New Buyer as China Private Refiner Takes a Taste

2 Mar 2017   exports, USA

U.S. oil that’s pumped in the Gulf of Mexico has found a new buyer in China. Shandong Dongming Petrochemical Group, a Chinese independent refiner, has bought U.S. Southern Green Canyon crude for the first time ever, according to two traders who asked not to be identified because the information is confidential. The shipment, due to arrive in April, will follow another cargo of the same grade that will be received by a Japanese processor this month. While supplies from American shale fields have made their way to Asia several times over the past year, the arrival of crude drilled off the southern U.S. coast is a more recent phenomenon spawned by output curbs in the Middle East. The lesser amount of crude leaving from the Persian Gulf has given the opportunity for similar types of oil from the Gulf of Mexico to sneak toward the biggest oil buyers in […]

U.S. Oil Exports Hit Record Levels

2 Mar 2017   exports

The bill contained an important provision for oil producers that read “to promote the efficient exploration, production, storage, supply, marketing, pricing, and regulation of energy resources, including fossil fuels, no official of the Federal Government shall impose or enforce any restriction on the export of crude oil.” This provision ended a crude oil export ban dating back to 1975. Despite the huge surge in U.S. shale oil production since 2008, crude oil producers had to sell their product to U.S. refiners, who were free to sell refined products on the world market. Even though the U.S. was (and remains) a net importer of crude oil, the longtime premium on West Texas Intermediate (WTI) over internationally traded Brent crude vanished in response to the shale boom. Meanwhile, refiners were exporting finished products that were more representative of Brent crude pricing. Refiners loved this arraignment, and lobbied to keep the ban […]

Conditions right for U.S. oil exports

1 Mar 2017   exports, USA

A global market looking to balance OPEC output declines and an expected increase in U.S. pipeline capacity could make oil exports attractive, analysis finds. The U.S. Energy Information Administration reported last week that total crude oil production at just over 9 million barrel per day, showing the regional market is gaining ground despite crude oil prices at about half their peak from 2014. Total crude oil exports, meanwhile, passed 1 million barrels per day for their highest level ever. A 40-year-old ban on crude oil exports was overturned by President Barack Obama during his second term in office. U.S. oil transport is limited by the pipeline capacity feeding southern ports, though if the Dakota Access Pipeline is completed, that could move up to […]

U.S. Crude Exports Surge to a Record

24 Feb 2017   exports

Another week, another record for U.S. crude exports. Producers and traders shipped out 1.21 million barrels a day of U.S. crude in the week that ended February 17, the most in Energy Information Administration data going back to 1993. Domestic output increased to 9 million barrels per day last week, the fastest pace since April, while U.S. refiners used the least crude since October 2015. Shale output has surged and tankers loaded in the Middle East during the last days of all-out production by OPEC nations arrived this month in the U.S., swelling stockpiles to a record. Prices for West Texas Intermediate crude have averaged $2.24 a barrel below global marker Brent this year, making U.S. oil more attractive to refiners around the world. Local refiners are using as much domestic crude as they can and the remaining incremental production is being exported, Gary Morgan, director for Clarksons Platou […]

The US is transitioning into a natural gas exporter

24 Feb 2017   exports

The United States is on track to become a net exporter of gas next year, driven largely by the growth of liquefied natural gas exports, according to the U.S. Energy Department. The U.S. started exporting LNG last year, courtesy of Houston-based Cheniere Energy, and the country is increasingly piping more natural gas to Mexico while, simultaneously, importing less gas via pipeline from Canada. The U.S. was still an overall net importer last year. The nation is projected to become a net exporter of total energy products shortly after 2020, the Energy Department said, which was a virtually unheard of proposition just a decade ago. Cheniere’s first LNG export facility at Louisiana’s Sabine Pass near the Texas border came online a year ago. Houston-based Freeport LNG Development’s export terminal is slated to start shipping LNG in 2018. Three other LNG export projects will be completed or under construction by 2021, […]

U.S. Oil Exports Are Rising

11 Feb 2017   exports

U.S. oil exports are on the rise, fueled by comparatively higher prices for foreign oil they compete with and lower shipping rates. But analysts say any further increases in exports will be slow and the prospect of American energy independence remains a lofty goal. Crude-oil sales abroad were prohibited for decades until the government lifted the export ban 14 months ago in the hopes of reducing a bulging oversupply that had helped…

US’ Sabine Pass LNG exports hit record high in January

11 Feb 2017   exports

LNG exports from the US’ Sabine Pass hit a record in January this year, according to data from Platts Analytics, Friday. Export volumes reached 1.476 Bcm of gas equivalent, versus a monthly average of just under 0.5 Bcm since the plant started loading cargoes in February 2016. The increase in production coincides with the ramp up of the facility’s second 4.5 million mt/year train which completed commissioning and was handed over to the operator, Cheniere, in September last year. Following a period of planned maintenance from September into October, when both trains were brought offline, export volumes have been increasing steadily. Article continues below… LNG Daily is essential reading as LNG supply dynamics continue to change in big markets like Japan, China, India and the U.S. This premier independent news publication for the global LNG industry gives readers information on every aspect of the global market from new LNG […]