Thursday, October 18, 2018
Crude oil surpassed hydrocarbon gas liquids (HGLs) such as propane and butane to become the largest U.S. petroleum export, with 1.8 MMbbld of exports in the first half of 2018, the Energy Information Administration (EIA) reports. U.S. oil exports rose 787,000 bbld, or nearly 80%, from the first half of 2017 to the first half of this year and set a new monthly record of 2.2 MMbbld in June. Much of this crude went to destinations in Asia and Oceania such as China, South Korea, and India. Europe was the second-largest market for U.S. exports, led by Italy, the United Kingdom, and the Netherlands. Canada was the only major U.S. crude oil destination where exports declined slightly in the first half of 2018 compared to the same period last year.
The U.S. exported 7.3 MMbbld of crude oil and petroleum products over the first half of 2018, the largest amount ever for the first half of a year. During this period, exports of crude oil and hydrocarbon gas liquids set record monthly highs. Exports of crude oil, HGLs, and motor gasoline grew in the first half this year compared to the same period in 2017, while distillate exports decreased. HGLs, including propane, ethane, butanes, and natural gasoline—were the second-largest petroleum export from the U.S. at 1.6 MMbbld. As with crude oil, destinations in Asia and Oceania such as Japan, South Korea, China, and India were also the primary recipients of U.S. HGLs. These countries have expanded petrochemical facilities that import U.S. HGLs as a feedstock. Overall U.S. exports set a new monthly record at 1.7 MMbbld in May.
In the first half of 2018, the U.S. exported 1.3 MMbbld of distillate, primarily to destinations in Central America and South America. The decline in exports in the first half of 2018 compared to the first half of last year was primarily the result of lower exports to a number of destinations in Central America, South America, and Europe. However, U.S. distillate exports go to the most destinations. Forty-nine destinations received at least 1000 bbld in the first half of 2018. The U.S. exported 913,000 bbld of motor gasoline over the first half of this year, an increase of 144,000 bbld compared to 2017.
More than half of gasoline exports went to Mexico, the largest single destination of any U.S. petroleum export. Mexico has relatively low refinery utilization rates and in recent years has increased imports of gasoline and other petroleum products from the U.S. The 504,000 bbld of gasoline exported from the U.S. to Mexico in the first half of 2018 was equivalent to more than 60% of the gasoline consumed in Mexico in those months.
In addition, EIA reported in September the U.S. likely surpassed Russia and Saudi Arabia to become the world’s largest crude oil producer earlier this year, based
on preliminary estimates in its Short-Term Energy Outlook.
In February, U.S. crude oil production exceeded that of Saudi Arabia for the first time in more than two decades. In June and August, the U.S. surpassed Russia for the first time since February 1999. Although the agency does not publish crude oil output forecasts for Russia and Saudi Arabia in its Outlook, it expects that U.S. oil production will continue to exceed that of the two countries’ for the remaining months of 2018 through 2019.
U.S. crude oil production, particularly light, sweet grades, has increased rapidly since 2011. Much of the recent growth has occurred in areas such as the Permian region in West Texas and eastern New Mexico, the Federal Offshore Gulf of Mexico, and the Bakken region in North Dakota and Montana.
The sharp oil-price downturn in mid-2014 resulted in U.S. producers reducing their costs and temporarily scaling back output. However, after crude prices increased in early 2016, investment and production began rising later that year. By comparison, Russia and Saudi Arabia have maintained relatively steady production growth in recent years.
Saudi Arabia’s crude oil and other liquids production data are EIA internal estimates. Russian data mainly come from the Russian Ministry of Oil, which publishes crude oil and condensate numbers. Other sources used to inform these estimates include data from major producing countries, international organizations such as the International Energy Agency, and industry publications, among others.
(SOURCE: The Weekly Propane Newsletter, October 15, 2018)
The U.S. exported 7.3 MMbbld of crude oil and petroleum products over the first half of 2018, the largest amount ever for the first half of a year. During this period, exports of crude oil and hydrocarbon gas liquids set record monthly highs. Exports of crude oil, HGLs, and motor gasoline grew in the first half this year compared to the same period in 2017, while distillate exports decreased. HGLs, including propane, ethane, butanes, and natural gasoline—were the second-largest petroleum export from the U.S. at 1.6 MMbbld. As with crude oil, destinations in Asia and Oceania such as Japan, South Korea, China, and India were also the primary recipients of U.S. HGLs. These countries have expanded petrochemical facilities that import U.S. HGLs as a feedstock. Overall U.S. exports set a new monthly record at 1.7 MMbbld in May.
In the first half of 2018, the U.S. exported 1.3 MMbbld of distillate, primarily to destinations in Central America and South America. The decline in exports in the first half of 2018 compared to the first half of last year was primarily the result of lower exports to a number of destinations in Central America, South America, and Europe. However, U.S. distillate exports go to the most destinations. Forty-nine destinations received at least 1000 bbld in the first half of 2018. The U.S. exported 913,000 bbld of motor gasoline over the first half of this year, an increase of 144,000 bbld compared to 2017.
More than half of gasoline exports went to Mexico, the largest single destination of any U.S. petroleum export. Mexico has relatively low refinery utilization rates and in recent years has increased imports of gasoline and other petroleum products from the U.S. The 504,000 bbld of gasoline exported from the U.S. to Mexico in the first half of 2018 was equivalent to more than 60% of the gasoline consumed in Mexico in those months.
In addition, EIA reported in September the U.S. likely surpassed Russia and Saudi Arabia to become the world’s largest crude oil producer earlier this year, based
on preliminary estimates in its Short-Term Energy Outlook.
In February, U.S. crude oil production exceeded that of Saudi Arabia for the first time in more than two decades. In June and August, the U.S. surpassed Russia for the first time since February 1999. Although the agency does not publish crude oil output forecasts for Russia and Saudi Arabia in its Outlook, it expects that U.S. oil production will continue to exceed that of the two countries’ for the remaining months of 2018 through 2019.
U.S. crude oil production, particularly light, sweet grades, has increased rapidly since 2011. Much of the recent growth has occurred in areas such as the Permian region in West Texas and eastern New Mexico, the Federal Offshore Gulf of Mexico, and the Bakken region in North Dakota and Montana.
The sharp oil-price downturn in mid-2014 resulted in U.S. producers reducing their costs and temporarily scaling back output. However, after crude prices increased in early 2016, investment and production began rising later that year. By comparison, Russia and Saudi Arabia have maintained relatively steady production growth in recent years.
Saudi Arabia’s crude oil and other liquids production data are EIA internal estimates. Russian data mainly come from the Russian Ministry of Oil, which publishes crude oil and condensate numbers. Other sources used to inform these estimates include data from major producing countries, international organizations such as the International Energy Agency, and industry publications, among others.
(SOURCE: The Weekly Propane Newsletter, October 15, 2018)
