WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Breaking News:

Nigeria Announces $41 Billion Rail Upgrade

Alt Text

Oil Prices Inch Higher As Libya Closes Crude Export Terminal

Oil prices increased slightly after…

Alt Text

The Oil Price Tug Of War

Oil prices are currently stuck…

Alt Text

U.S. Energy Expenditure Level Lowest In Over A Decade

The Energy Information Administration reported…

Oil & Gas 360

Oil & Gas 360

From our headquarters in Denver, Colorado, Oil & Gas 360® writes in-depth daily coverage of the North American and global oil and gas industry for…

More Info

Expect Higher Crude Oil Exports To European, Asian Markets

Tanker

In its appearance at EIA’s annual Energy Conference last week, Wood Mackenzie gave a presentation on crude oil exports, saying that U.S. crude oil exports rose in tandem with U.S. oil production following the repeal of the U.S.’s 40-year crude oil export ban in December 2015.

Oil from North Dakota, Texas moves to users in Asia and Europe

According to WoodMac, the majority of the growth in exported crude oil was to Asian and European markets, with growth also occurring to Latin America.

Source: Wood Mackenzie

The growth was fueled primarily by greater production in North Dakota and Texas, with the increase in operating oil rigs in tight oil plays. In an outlook to 2025, Wood Mackenzie predicted that the majority of U.S. production growth would stem from the Wolfcamp—with even small increases in Permian productivity granting large increases in the oil production forecast.

(Click to enlarge)

Source: Wood Mackenzie

The proportion of light U.S. oil supply is expected to rise, due to tight oil production. The proportion of heavy U.S. oil supply is expected to increase slightly, with growth from Canada’s heavy oil offsetting decreases in Mexican heavy oil. Related: ‘’U.S. Rig Count Must Drop 150 For Oil Markets To Balance’’

The growth in light U.S. oil supply may run against the United States’ ability to process additional light oil, with few capacity additions expected.

The reduction in U.S. refining capability increases the likelihood of growth in tight oil exports to European and Asian markets. European markets may be more able to absorb U.S. light crude exports, due to the lower shipping cost and Europe’s need for a larger portion of light crude in its refinery crude mix.

By Oil and Gas 360

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News