For one week in November the US was a net crude exporter
Published by Elizabeth Corner,
The EIA reports: during the week ending 30 November 2018, the US exported more crude oil and petroleum products than it imported for the first time in weekly data going back to 1991. From 24 – 30 November, the US exported an estimated record 3.2 million bpd of crude oil as well as an estimated 5.8 million bpd of petroleum products such as distillate fuel oil, motor gasoline, and propane.
This single-week estimate is part of a longer-term trend of declining imports of crude oil and increasing exports of petroleum products and, more recently, crude oil. From week to week, estimated net crude oil and petroleum product trade volumes can vary by as much as 2 – 3 million bpd because of how the data are collected and processed.
In mid 2016, EIA improved its weekly estimates of crude oil and petroleum product exports by incorporating near real-time data from US Customs and Border Protection, the government agency responsible for collecting export data for the US Census Bureau. Monthly export volumes provided by the US Census Bureau and published in EIA’s Petroleum Supply Monthly are EIA’s definitive data series for petroleum exports and are considered higher quality than the weekly estimates.
US crude oil production has increased in recent years, recently setting a record of 11.5 million bpd in September, while US crude oil imports have decreased. After averaging a record high of 10.1 million bpd in 2005, gross crude oil imports fell to an average of 7.3 million bpd in 2014. Since then, annual crude oil imports have increased slightly, most recently averaging 8.0 million bpd in 2017.
At the same time, US refinery runs have been at record high levels. The increase in refinery output of petroleum products has outpaced growth in US consumption of petroleum products such as distillate fuel oil, gasoline, and propane, leading to an increase in petroleum product exports.
As a result, the US has been in a long-term trend of declining net imports of crude oil and petroleum products. However, the United States still imports more crude oil than it exports: in September 2018, the most recent monthly data, the United States imported 7.6 million bpd and exported 2.1 million bpd. US exports of petroleum products have continued to increase, and in 2017, the US was a net exporter of several petroleum products such as motor gasoline, distillate, hydrocarbon gas liquids, and jet fuel.
The recent increase in US crude oil exports occurred despite the US exporting no crude oil to China in August and September. Before August, China was the second largest destination for US crude oil exports, receiving an average of 378 000 bpd in the first seven months of 2018. The drop in US crude oil exports came after the Chinese government temporarily included US crude oil on a list of goods subject to increased import tariffs in addition to a narrowing difference between international crude oil prices and US crude oil prices.
China was the second largest destination for US crude oil exports in 2017, receiving 221 000 bpd, or 19%, of total US crude oil exports that year. In February 2017, China received more U.S. crude oil exports than Canada, marking the first time that a country other than Canada was the top destination of US crude oil exports on a monthly basis. China’s imports of US crude oil also surpassed Canada's imports of US crude oil in October 2017 and in three months in 2018. In August and September 2018, exports to other countries in Asia such as Taiwan, South Korea, and India partially offset the drop in US crude oil exports to China.
Read the article online at: https://www.worldpipelines.com/business-news/28122018/for-one-week-in-november-the-us-was-a-net-crude-exporter/
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