Daily Management Review

Even More Growth Is Expected For U.S. Oil Exports Already Touching Record Highs


07/27/2017




Even More Growth Is Expected For U.S. Oil Exports Already Touching Record Highs
As U.S. refineries seek to meet rising demand - from overseas, rather than the drivers on nearby roadways, they are producing more fuel than ever.
 
In an outgrowth of booming domestic production since the shale oil revolution started in 2010, the U.S. became the world's top net exporter of fuel last year. The U.S. has traditionally been a top importer and consumer and that's a fundamental shift from that traditional role in global markets.
 
Making foreign fuel markets increasingly important for the future growth prospects and profit margins of U.S. refiners, net exports are on track to hit another record in 2017.
 
Giving them the raw material they need to produce internationally competitive fuel, shale oil producers have provided refiners with abundant and cheap domestic crude supplies.
 
By sending a net 2.5 million barrels per day (bpd) of petroleum products to foreign markets, the nation set a record in 2016. And according to U.S. government data, compare that to net fuel imports of 2.3 million just a decade ago.
 
While compensating for lack of strong growth this year in U.S. fuel demand, in companies including Marathon Petroleum and Valero, booming exports have bolstered margins at the biggest U.S. refiners.
 
Now, to further leverage rising U.S. exports for international political gain - a policy Trump calls "energy dominance", the government of U.S. President Donald Trump is seeking to deregulate oil and gas production,
 
the ongoing effort by the Organization of the Petroleum Exporting Countries (OPEC) to tame a global glut that has halved oil prices since 2014 has been already complicated by surging U.S. crude production.
 
American refineries now re-export much of the imported oil as jet fuel, diesel and gasoline as the United States remains a massive importer of crude oil - regularly trading the top spot with China.
 
Amid refinery outages and high production costs, in countries such as Mexico and Brazil, where the thirst for U.S. fuel is likely to accelerate, the U.S. has a growing role in satisfying demand for motor fuel.
 
Traders have said that diesel exports to Europe increased in June to levels not seen in nearly two years, traders have said and refined U.S. exports are also going further afield to Asia.
 
one of the leading metrics for predicting international crude oil supply and price trends have traditionally been measured by U.S. fuel demand, by oil traders, refiners and investors. Now, for guidance, foreign demand for U.S. fuel is being looked at.
 
"Globally, you're going to have increased demand for all of our products, and so our focus will go beyond the U.S. borders," said Texas-based Valero's Chief Executive, Joe Gorder.
 
In contrast, a "slight decline" in U.S. gasoline demand over the next decade was predicted by him
 
U.S. gasoline demand has leveled off this year after it hit a record in 2016, as low pump prices encouraged consumption. Future domestic demand growth is expected to be limited by rising fuel efficiency in cars.
 
(Source:www.reuters.com)






Science & Technology

Hundreds Of Thousands Of Routers Have Been Hacked By Russians, Warns The FBI

Chinese Study Claims Heart Diseases Can Be Reduced By Having An Egg A Day

Asteroid mining: Reality or fiction?

3D Printing Used For Life Saving Kidney Transplant In Two Year Old At U.K. NHS

California to require solar panels for new homes by 2020

Blockchain Enables De Beers To Track Diamond From The Miner To The Retailer

Microsoft releases Windows 10’s April 2018 Update

DNA Sequencing Project Proposed For All Complex Life Forms On Earth By An Int’l Team

Facebook may start production of its own microprocessors

Long-Term Alcohol Monitoring Could Be Possible With A New Injectable Chip Developed By U.S. Researchers

World Politics

World & Politics

The British government is trying to unblock money to pay off the national debt

Ministerial Visit From India To North Korea Aimed At Strengthening Ties

What countries are the biggest losers of Trump’s Iran decision?

World's Oldest Elected Prime Minister Is Malaysia’s 92 Year Old Mahathir Mohamad

Why Is U.S. Pulling Out Of The Iran Deal A Big Deal For The World

Merkel, Macron, May call on Iran to adhere to the nuclear deal

Arab Region Driven In ‘Wrong Direction’ In Last 10 Years, Say Arab Your: Survey

German doctors demand a tax on sugar