exports

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 […]

US Could Export More Oil Than OPEC Countries In 2017

6 Feb 2017   exports, USA

The U.S. may export more oil in 2017 than four OPEC member states produce, according to a survey of energy analysts by Bloomberg. The U.S. is already outproducing Libya, Qatar, Ecuador and Gabon; in 2017, U.S. companies could ship more oil overseas than those OPEC nation pump out of the ground, according to Bloomberg . “The United States has dramatically increased energy production and use even as emissions continue to decline,” Reid Porter, a spokesman for the American Petroleum Institute (API), told The Daily Caller News Foundation. “For the first time in our lifetime, we can now say that North America has the potential to become a net energy exporter,” Porter said. “That’s a revolutionary change, a significant shift from where we were just a few short years ago.” The U.S. Energy Information Administration (EIA) expects oil production to top nine million barrels a day in 2017. The U.S. […]

U.S. May Export More Oil in 2017 Than Four OPEC Nations Produce

2 Feb 2017   exports, USA

U.S. crude exports are poised to surpass production in four OPEC nations in 2017 and may grow even more if President Donald Trump honors pledges to ease drilling restrictions and maximize output. The world’s largest oil-consuming country could sell as much as 800,000 barrels a day of crude overseas this year, according to four analysts surveyed by Bloomberg. That’s more than OPEC producers Libya, Qatar, Ecuador and Gabon each pumped in December. The U.S. exported 527,000 barrels a day in the first 11 months of 2016, Energy Information Administration data show. Chalk it all up to a resurgence in shale oil and gas, which Trump is counting on to create jobs and rebuild roads, schools and bridges. U.S. output will rebound to more than 9 million barrels a day in 2017 after sliding 5.6 percent to 8.87 million in 2016, the EIA estimates . And since restrictions on U.S. […]

U.S. Enjoys First-Ever Oil Trade Surplus With Latin America

1 Feb 2017   exports

The U.S. for the first time is pushing more crude and refined petroleum products into Latin America than it brings back, signaling a change in the global trade map that could be tested if President Donald Trump introduces border taxes. The scales tipped in favor of the U.S. in October, when it recorded a surplus of 89,000 barrels a day of petroleum, the first gain for the U.S. since records began in 1993, according to the U.S. Energy Information Administration. In November, the surplus grew to 184,000 barrels a day, the EIA said Tuesday. That compares to a 4.3 million barrel deficit in 2005. The change comes as Latin America, led by Mexico, is importing unusually large amounts of gasoline as aging refineries fail to keep up with soaring demand. At the same time, the region’s output of heavy crude, once a staple for U.S. refiners, is declining just […]

Will the US Really Be a Major Energy Exporter?

17 Jan 2017   exports, USA

The analytical arm of the U.S. Department of Energy now says the United States will become a major energy exporter in a few years. Will this eventually prove to have been an accurate prediction? The forecast is contained in the Energy Information Administration (EIA)’s Annual Energy Outlook (AEO) for 2017 , released on January 5th. In the publication’s Reference Case scenario, America is energy self-sufficient by 2026 and a net exporter thereafter. Prominent news organizations have understandably reported the EIA forecast uncritically: after all, to question it might seem to require independent and sophisticated data analysis. Nevertheless, it should be noted that past AEO reports have erred, often spectacularly. A recent peer-reviewed study examined 630 renewable energy forecasts by the EIA between 2004 and 2014 and found that most sharply under-estimated solar/wind generation or capacity growth, and that the inaccuracy of forecasts has actually worsened in recent years. EIA’s […]

EIA: US On Track To Export More Energy than It Imports by 2026

6 Jan 2017   exports, USA

One year after Congress lifted a ban on US oil exports, the federal Energy Information Administration finds the nation is set to become a net energy exporter. A net energy importer for more than 60 years, the United States is poised to flip that trend and become a net exporter by 2026, according to the U.S. Energy Information Administration (EIA). In its Annual Energy Outlook 2017, the agency said declining petroleum imports coupled with an increase in natural gas exports is driving the change. That’s based on eight reference cases that model a variety of pricing, technological and economic factors. In most of those cases, U.S. production is likely to decline in the 2030s, which will slow or reverse energy export growth, EIA said. “EIA’s projections show how advances in technology are driving oil and natural gas production, renewables penetration, and demand-side efficiencies and reshaping the energy future,” EIA […]

US ports prime themselves for expected uptick in petchem exports

5 Jan 2017   exports

The world’s second-largest petrochemical port in Houston may command 75% of all US polyethylene exports, but expected growth in international shipments as a slew of new ethane crackers and associated derivative units start coming online this year has US ports a thousand miles or more away gearing up to nab a piece of the action. Last month Georgia’s Port of Savannah increased its ship-to-shore crane total to 26 — one more than the 25 at the Port of Houston’s Bayport and Barbour’s Cut terminals — with the arrival of four new post-Panamax cranes that cost about $15 million each. Resin packagers and distributors, such as New Jersey-based A&R Bulk-Pak and Mobile, Alabama-based SeaPac Inc., are setting up operations at or near the Port of Charleston in South Carolina. The Port of New Orleans also is adding post-Panamax cranes, resin packaging capacity and taking empty containers from Memphis shipped via […]

US gasoline exports to Mexico hit record high on refinery issues, strong demand

31 Dec 2016   exports, Mexico, USA

Mexico’s record-low refinery production and growing consumer demand helped push US gasoline exports there to a new high in October, a trend that has boosted prices in both countries. Gasoline exports to Mexico climbed 1.86 million barrels to 12.08 million barrels in October, according to US Energy Information Administration data released Friday, the highest total since that data started being tracked in 1993. The previous peak was 11.42 million barrels in December 2010. Mexico is by far the largest importer of US gasoline, taking in 45.8% of the 177.4 million barrels of finished gasoline the US exported through October of this year. That export demand has pushed prices to unseasonably strong levels in the US Gulf Coast, which typically sees demand weaken during the fall and winter months. The outright price for Gulf Coast pipeline-delivered conventional gasoline was assessed at $1.7098/gal Thursday, its highest price since August 18, 2015. […]

U.S. natural gas exports to Mexico continue to grow

30 Nov 2016   exports

U.S. pipeline exports of natural gas continued to grow in 2016, and they have doubled since 2009. Almost all of this growth is attributable to increasing exports to Mexico, which have accounted for more than half of all U.S. natural gas exports since April 2015. In August, the United States exported 4.2 billion cubic feet per day (Bcf/d) of natural gas to Mexico via pipelines. U.S. daily pipeline exports to Mexico through August 2016 are at a yearly average of 3.6 Bcf/d, 25% above the year-ago level and 85% above the five-year (2011–15) average level. In 2015, Mexico’s energy ministry (SENER) announced a five-year plan to significantly expand the country’s natural gas pipeline network to accommodate higher levels of natural gas imports from the United States. These imports would help meet increasing power demand, offset declining domestic natural gas production, reduce […]

New Milestone: The U.S. Is Now a Net Exporter of Natural Gas

29 Nov 2016   exports

Two contractors talk on a natural gas drilling rig in Keene, Texas. In November—as well… The U.S. has become a net exporter of natural gas, further evidence of the how the domestic oil and gas boom is reshaping the global energy business. The U.S. has exported an average of 7.4 billion cubic feet a day of gas in November, more than the 7 billion cubic feet a day it has imported, according to S&P Global Platts, an energy trade publisher and data provider. Exports also topped imports for a few days in September, Platts reported. It has been nearly 60 years since the U.S. last shipped out more natural gas than it brought in annually, according to the U.S. Energy Information Administration. The milestone comes less than a year after restrictions on most crude oil exports were lifted , allowing tankers of crude to be freely shipped overseas for […]

China, India Shrug at U.S. Crude Exports With Wrong Blend

23 Nov 2016   exports

Two of the world’s fastest-growing economies have barely noticed the first year of unrestricted U.S. crude exports since the 1970s. In the first year since the U.S. lifted a 40-year-ban on most exports, less than 3 percent have gone to China and India even as their demand for oil grew. India hasn’t taken a drop, according to U.S. Census data. “The growing appetite of China and India is not met by the barrel that we are offering,” Harold “Skip” York, principal analyst at Wood Mackenzie in Houston, said in a telephone interview. It’s not hard to see why. There’s a mismatch of what the U.S. is selling and what those nations are buying. About 98 percent of the American exports are light crude, Census data show. Most of China and India’s refining capacity of about 19 million barrels a day is geared to take heavy oil, Kunal Agrawal, Bloomberg […]

Awash in Gasoline, U.S. Refiners Export Fuel at Record Pace

16 Nov 2016   exports

Shipments likely to keep growing as refiners ramp up Surplus sent to Canada, Egypt and Caribbean floating storage The U.S. has more gasoline than it knows what to do with. Exports have risen above imports for three consecutive weeks as recurring pipeline outages and higher production levels by refiners caused Gulf Coast inventories to grow. Typically a net importer of gasoline, the U.S. has shipped a record amount of the motor fuel abroad and doesn’t show signs of stopping. “Exports will have to be high to keep stocks under control,” Robert Campbell, head of oil products research at market consultant Energy Aspects Ltd. in New York, said in an e-mail. “Runs should be quite high on the U.S. Gulf Coast in the coming weeks.” The abundance of gasoline pushed Gulf Coast gasoline prices to an eight-month low last week and spurred the longest losing streak since 2012 in futures, […]

US emerges as net exporter of natural gas

15 Nov 2016   exports

In a historic first, the US in early November began seeing small net volumes of natural gas exports that recently climbed above 1 Bcf/d, an analysis of data from Platts Analytics’ Bentek Energy showed Monday. The emergence and rapid acceleration in export volumes comes amid a recent decline in Canadian imports and a ramp up in feedgas volumes delivered to the Sabine Pass LNG export terminal. In November, imports of Canadian gas have averaged just 4.5 Bcf/d and are down 21% from imports that averaged 5.7 Bcf/d in October. Over the same period, feedgas deliveries to Sabine Pass have climbed to record highs, averaging 1.5 Bcf/d month to date, up from an average 249 MMcf/d in October. On Monday, preliminary data showed the US exporting about 910 MMcf of gas.

Analysis: US crude exports hit record in September

5 Nov 2016   exports

US crude exports rose 35,000 b/d to a record 692,000 b/d in September after Brent’s premium to WTI widened, an analysis of Census Bureau data released Friday showed. Brent’s premium over WTI widened from 34 cents/b in May to average $1.88/b in August and $1.66/b in September. After the spread tightened in May, US crude exports shrank to 383,000 b/d by June as arbitrage opportunities tightened. By August, US crude exports had bounced back to 657,000 b/d. US crude exports have risen significantly since Congress lifted export restrictions in December 2015. Previously, some analysts attributed some of the early exports to refiners testing various US grades in their systems, but that likely is not the case anymore, according to Dominic Haywood, oil analyst at Energy Aspects. “Early on, it may have been test cargoes, but I think that’s done and dusted now,” he said. “If you look at where […]

Will U.S. Oil Exports Help Restore Its Waning Geopolitical Influence?

28 Oct 2016   exports, USA

Since the U.S. lifted its restrictions on crude oil exports in December 2015, a dozen new countries have joined its long-term export partner Canada, which had been exempt from these restrictions. The U.S. is currently exporting crude in the thousands of barrels per day, while importing in the millions of barrels per day. However, with oil prices now recovering from February’s ten-year-lows, some companies are ramping up drilling efforts, especially in shale plays that have stayed profitable even in the sub-US$45-50 oil price. Healthy demand in Asia and an over-reliance on Russian oil in some parts of Europe are also steering potential buyers toward U.S. crude oil. Of course, the U.S. is likely to embrace the opportunity that oil affords to form new alliances, boost ties with existing allies, or grab chunks of markets traditionally held by Russia or OPEC producers. In the first five months after the export […]

Growth in propane exports drove U.S. petroleum product export growth in first half of 2016

5 Oct 2016   exports

In the first half of 2016, the United States exported 4.7 million barrels per day (b/d) of petroleum products , an increase of 500,000 b/d over the first half of 2015 and almost 10 times the crude oil export volume. While U.S. exports of distillate and gasoline increased by 50,000 b/d and nearly 140,000 b/d, respectively, propane exports increased by more than 230,000 b/d. Propane surpassed motor gasoline to become the second-largest U.S. petroleum product export, after distillate. Although total U.S. petroleum product exports grew, export destinations remained largely unchanged. Mexico , Canada , and the Netherlands received the greatest volumes of U.S. petroleum products in the first half of 2016, importing 775,000 b/d, 579,000 b/d, and 271,000 b/d, respectively. U.S. petroleum products tend to stay in the Western Hemisphere. In 2015, approximately 60% of total petroleum product exports remained within […]

Here’s Who’s Buying Up U.S. Oil

17 Aug 2016   exports, USA

U.S. crude oil is reaching all corners of the world, after a 40-year ban on exports was lifted at the end of last year. More than 87 million barrels of crude and condensate have been shipped to 17 countries in the first half of 2016, based on Bloomberg calculations from Census Bureau data. Most has gone to Canada, which received 53.5 million barrels, followed by Curacao, which took 8.68 million, and the Netherlands with 6 million. Canada was already a customer, having been largely exempt from the limits. The U.S. Congress and President Barack Obama agreed in December to end the trade restrictions, which were established after OPEC oil embargoes that crippled U.S. supplies in the 1970s. Other buyers include the U.K, Japan and even the Marshall Islands, according to U.S. Census Bureau data. “The data for shipments to the Marshall Islands could have been a mistake, those were […]

Was Lifting The Export Ban A Success?

12 Aug 2016   exports

 Last December, the United States government voted to lift four-decades of restrictions on crude oil exports as part of a bipartisan effort to prevent another government shutdown caused by political paralysis on Capitol Hill. The restrictions—which made Canada the U.S.’ main export destination for crude oil for decades—came into being after the 1975 Arab Oil Embargo sent shockwaves across the American economy. Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an Embargo against the United States and its allies for their political decision to sell military supplies to Israel during the 1973 Arab-Israeli War. The U.S. legislature enacted the new policy to keep American energy supplies within its borders and alleviate the nation’s dependency on foreign powers. In the second half of 2015, arguments against the regulations came from American oil companies, including Continental Resources, Pioneer Resources and ConocoPhillips, who wanted the policy change […]

EIA sees US becoming net natural gas exporter in H2 2017

13 Jul 2016   exports, USA

With natural gas pipeline exports to Mexico on the rise and the ramp up of US LNG exports from Louisiana, the US Energy Information Administration on Tuesday projected the US will become a net exporter of natural gas in the second half of 2017. EIA’s July Short-Term Energy Outlook predicted gross pipeline exports will rise by 0.7 Bcf/d in 2016, then taper off by 0.2 Bcf/d in 2016 to an average of 5.3 Bcf/d. Driving the increase are the growing appetite from Mexico’s power sector and flat gas production there. At the same time, following the February kickoff cargo shipments from Cheniere’s Sabine Pass LNG liquefaction plant in Louisiana, the agency as well expects a rise in gross LNG exports of 0.5 Bcf/d in 2016, and then 1.3 Bcf/d in 2017 as Sabine Pass ramps up capacity, the EIA outlook said. “For the first time since 1957, the United […]

U.S. crude oil exports hit record 662,000 bpd in May: Census Bureau

7 Jul 2016   exports

U.S. crude oil exports rose to a record 662,000 barrels per day in May from 591,000 bpd in April, foreign trade data from the U.S. Census Bureau showed on Wednesday. Canada accounted for the most U.S. crude exports at 308,000 bpd, followed by the Netherlands at 110,000 bpd and Curacao at 67,000 bpd. Other prominent destinations were Britain at 36,000 bpd, Japan at 29,000 bpd and Italy at 23,000 bpd. The total export figure was the highest on record since at least 1920, according to U.S. government data. U.S. oil exports have risen since a decades-long ban on them was lifted in January. During that time, a number of merchants, traders, producers and even refiners have moved crude to Latin America, Europe, Asia and other locations. The Census Bureau publishes its oil export […]

U.S. Crude Exports Hit 96 Year High

7 Jun 2016   exports

Mid Continent Well U.S. crude oil exports rose to 591,000 barrels per day in April, up 83,000 barrels from March, according to new data from the U.S. Census Bureau on Friday. The total figures are the highest since at least 1920, Rigzone reports. A majority of the crude – 324,000 bpd of it – went to Canada, 90,000 more went to Curacao and 36,000 others went to the Bahamas. The figures come almost six months after the U.S. government lifted restrictions on crude exports. Related: Does Iran Have The Upper Hand In OPEC Oil War Three months after the authorities lifted the four-decade ban, the U.S. had exported less in the first quarter of 2016 than it did over the same period the year before, when the ban was still in place. The immediate beneficiaries of the ban suspension are gas and oil companies such as Chevron and Exxon […]

Trafigura Sending Shipment of U.S. Oil Through Panama Canal

30 Mar 2016   exports

After heading as far as Israel and China, unrestricted U.S. crude oil exports are set for another first since a 40-year ban on overseas sales was lifted three months ago: crossing the Panama Canal. Trafigura Group Pte., the trading house, is shipping a cargo of West Texas Intermediate oil via the 50-mile (80-kilometer) waterway linking the Atlantic and the Pacific en route to a refinery on Nicaragua’s western coast. The Panamax vessel DS Promoter is carrying 380,000 barrels of WTI to the 20,000-barrel-a-day Manref refinery on the outskirts of Managua, Trafigura said. Puma Energy International, in which the trading house controls a 49 percent stake, bought the refinery from Exxon Mobil Corp. in a deal announced in 2011. The canal’s giant locks, which lift vessels 85 feet above sea level to cross the Panama isthmus through the Gatun Lake, can’t accommodate the largest tankers, increasing the cost of shipping […]

U.S. Lifted The Crude Oil Export Ban, And Exports Went… Down

29 Mar 2016   exports

Just over three months after the authorities lifted the four-decade ban on crude oil exports, the U.S. has actually exported less this year than it did over the same period the year before , when the ban was still in place. According to Clipper Data market intelligence cited by the Financial Times , we’ve seen a 5 percent decline in U.S. crude oil export volumes since the beginning of this year. The data suggests that on average we are exporting (waterborne) 325,000 barrels per day now, compared to 342,000 barrels per day during the first months of 2015. And there’s no official data yet—not since the beginning of this year, when the U.S. Energy Information Administration (EIA) noted that during the week ending 22 January , the U.S. had exported just shy of 400,000 barrels of oil, which again was 25 percent less than what was exported for the […]

US oil shipments ease despite end to export ban

24 Mar 2016   exports, USA

The US government abolished 40-year-old constraints on crude oil exports in December. But since then less US oil has been put on ships headed abroad.   Volumes of US crude exported by tanker have declined 5 per cent in 2016 to an average 325,000 barrels a day, according to Clipper Data, a market intelligence service. Waterborne exports were 342,000 b/d in the first three months of 2015.   The oil industry hailed the ability to freely trade US crude as the dawn of a new era in global energy. The data so far suggest a big net addition to supplies will be slow in coming, however. The US was already sending hundreds of thousands of barrels per day to Canada before the broad export ban was lifted. The Canada trade has become less profitable this year and exports elsewhere have yet to make up the difference. Abudi Zein, Clipper Data’s chief executive, said: “Lifting the export ban has firmly tied the US into the global market but the world wasn’t waiting for US crude.”   As US lawmakers debated the oil export law, Line 9B, a Canadian pipeline, was reversed in December so crude could flow over land from west to east. Line 9B will eventually carry as much as 300,000 b/d to Quebec province, diminishing Canada’s demand for oil imported by tanker.

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The U.S. Is Exporting Its Oil Everywhere

18 Mar 2016   exports

Three months since the U.S. lifted a 40-year ban on oil exports, American crude is flowing to virtually every corner of the market and reshaping the world’s energy map. Overseas sales, which started on Dec. 31 with a small cargo aboard the Theo T tanker, have been picking up speed. Oil companies including Exxon Mobil Corp and China Petroleum and Chemical Corp have joined independent traders such as Vitol Group BV and Trafigura Ltd Pet. in exporting American crude. The “growing volumes of exports” from the U.S. are now “spooking the markets,” Amrita Sen, chief oil analyst at consultants Energy Aspects Ltd. in London, said in a note. The “flurry of export activity” is helping to support spot oil prices in the U.S. relative to contracts for later delivery, she […]

Cheniere preparing to load second LNG cargo from Sabine Pass: sources

12 Mar 2016   exports, LNG

The Cheniere-operated Sabine Pass LNG terminal in Louisiana is preparing to load its second cargo, market sources said Friday. The facility is understood to be taking more feed gas than in the previous week, indicating that the facility has restarted liquefaction. “[Gas flows to the plant] were almost zero for a few days and have increased substantially in the last three days,” one source said. Another source said deliveries had ramped up to 200,000 MMBtu/d. 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 supply projects to gas quality issues. The Cheniere-controlled 162,000 cm m Clean Ocean is in a holding pattern off the Louisiana coast, according to cFlow, Platts […]

In Drive to Deflate Natural Gas Surplus, US Pounces on Canada

12 Mar 2016   Canada, exports

US gas drillers, battered by the lowest prices in 17 years, find another release valve for their output: Canada. (Bloomberg) — U.S. gas drillers battered by the lowest prices in 17 years have found another release valve for their output: Canada. Over the past five years, the shale boom that unlocked vast supplies of natural gas across North America has tripled pipeline shipments from the U.S. to Mexico, and spurred the first seaborne exports from the lower 48 states. Now, pipeline companies led by Spectra Energy Corp., TransCanada Corp. and Energy Transfer Partners LP are gearing up to more than double the flow into Canada by 2027, according to the Canadian Energy Research Institute. The push begins next year, with plans to open or expand at least three major pipelines and reverse the flow northward on a fourth. Meanwhile, TransCanada may be going a step further, engaging in acquisition […]