The U.S. oil and gas industry is well-positioned to survive and even thrive in a trade war with China, Drillinginfo said in the most recent update to its “U.S. Exports” report.

Sanctions against China and Venezuela have curbed crude oil exports to those countries, but the slack has been picked by increased shipments to India, Japan, South Korea, Taiwan, Singapore, Chile and Peru, among others. If trade talks ultimately result in China adding imports, it would create space for greater production of U.S. crude, Drillinginfo said.

With the domestic market saturated, the added barrels in U.S. crude oil production are and will continue to be exported, Drillinginfo said. Growth is derived from shale plays that produce lighter oils that are a better fit for non-U.S. refiners. The Gulf Coast refinery complex is built to handle heavier crudes, such as those imported from Canada and Venezuela.

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