Wednesday, October 23, 2019
The U.S. Smashes Another Oil Export Record
Growing U.S. crude oil production and exports have resulted in America selling oil to more destinations around the world than the number of countries from which it imports crude oil, the Energy Information Administration (EIA) said on Tuesday.
A decade ago, the United States was importing crude oil from as many as 37 foreign sources per month, and its exports were restricted almost exclusively to Canada. After the lifting of those restrictions at the end of 2015, U.S. crude oil exports have been on the rise and reaching more destinations.
Between January and July 2019, the largest number of sources of America’s oil imports fell to 27 in any of those months, the EIA has estimated.
On the other hand, the number of destinations for U.S. crude oil exports rose, with exports to as many as 31 destinations per month in the first seven months this year.
Thanks to its growing domestic production—which increased by 2.6 million bpd between January 2016 and July 2019—the U.S. has been importing crude from fewer sources. The domestic production increase has been mostly light sweet crude, which U.S. refiners have accommodated by displacing imports of light and medium crude from countries other than Canada and by raising refinery utilization rates, EIA says.
On the other hand, expanding export terminals in the U.S. and global demand for light sweet crude have allowed the U.S. to export oil to more destinations.
U.S. crude oil exports jumped by nearly 1 million bpd in the first half of 2019 from the same period in 2018 to average 2.9 million bpd between January and June this year, the EIA said earlier this month.
Average U.S. exports of crude oil rose by 966,000 bpd in the first half of 2019, compared to the first half of 2018. In June this year, the U.S. set a monthly average record of 3.2 million bpd of crude oil exports, EIA data showed.
By Tsvetana Paraskova for Oilprice.com
Posted by WisePunter at 9:40 AM