U.S. Oil, Petroleum Exports More than Double

The Energy Information Administration (EIA) in December 2017 reviewed that U.S. crude oil and petroleum product gross exports more than doubled over the past six years, increasing from 2.4 MMbbld in 2010 to 5.2 MMbbld in 2016. Exports of distillate, gasoline, propane, and crude oil all rose, but at different paces and for varying reasons.
Restrictions on exporting domestically produced crude oil were lifted in December 2015, and in 2016 the U.S. exported an average of 520,000 bbld. U.S. exports reached 1.1 MMbbld in February 2017, the highest monthly level on record. While Canada remains the largest destination for U.S. oil exports, Canada’s share has declined, dropping from 92% in 2015 (427,000 bbld) to 58% in 2016 (301,000 bbld). Other leading destinations for U.S. crude exports in 2016 included the Netherlands, Curacao, China, Italy, and the U.K.

Beyond the lifting of oil export restrictions, other factors such as favorable price differentials, lower shipping costs, and rising domestic production have boosted exports. U.S. production fell through the first nine months of 2016 but rose at the end of the year and continued to increase through 2017. U.S. crude oil exports in 2016 were 55,000 bbld greater than exports in 2015—a slower rate of growth compared with year-over-year changes in 2015 and 2014.

U.S. exports of distillate also experienced slower year-on-year growth compared with recent years. In 2016, the U.S. exported 1.2 MMbbld, the country’s largest petroleum product export. Between 2010 and 2016, U.S. exports grew by 81% (534,000 bbld), but most of this growth occurred between 2011 and 2013. The largest destination for distillate exports in 2016 was Mexico, averaging 182,000 bbld, followed by Brazil (125,000 bbld) and the Netherlands (108,000 bbld).

U.S. exports of motor gasoline have more than doubled since 2010, growing from 335,000 bbld to 761,000 bbld in 2016. The growth in gasoline exports took place while domestic consumption, as measured by product supplied, was also increasing. Mexico is the top destination for motor gasoline exports, and the volume of gasoline trade is significant to U.S. refineries. Over the past five years, U.S. exports to Mexico accounted for between 44% and 53% of total U.S. exports.

Unlike the recently slowing increases in U.S. exports of crude oil, distillate fuel, and motor gasoline, propane export growth has accelerated. Now averaging north of 800,000 bbld, exports are shipped to different destinations than other U.S. petroleum exports. Most other petroleum exports stay in the Western Hemisphere, whereas top destinations for U.S. propane exports are Asian countries such as Japan and China. Propane has many non-transportation sector end uses, including as a fuel for heating and cooking and as a feedstock for the petrochemical industry.

(SOURCE: The Weekly Propane Newsletter, January 2, 2018)