Exports of crude oil from the U.S. Gulf Coast could hit a record 3.3 MMbbl/d this quarter, analysts said on June 27, as Europe chases U.S. crude to offset sanctioned Russian oil.
U.S. exports have risen in the last three months, helped by Washington's decision to release 180 MMbbl of oil from the nation's Strategic Petroleum Reserve, which have flooded the domestic market.
Exports to Europe are expected to average about 1.4 MMbbl/d this quarter, about 30% higher than the year-ago quarter, while export to Asia is set to drop to under 1 MMbbl/d, according to energy data firm Kpler.
The higher purchases by European buyers have more than offset the decline in flows to Asian countries, which have been buying heavily discounted Russian crude.
"The 1.53 MMbbl/d of U.S. crude exports to Europe recorded in April is the second-highest reading on record," said Viktor Katona, co-head of crude analysis at Kpler. He said the figure illustrates "a very strong pull in the immediate aftermath of Russia's invasion of Ukraine."
Tight U.S. refining capacity also boosted exports, Rystad Energy analysts noted. The U.S. has lost nearly 1 MMbbl/d of refining capacity since 2020.
"It's no surprise that government intervention to support crude supplies has resulted in an increase in exports," said Artem Abramov, head of shale research at Rystad Energy.
Throughput via the Port of Corpus Christi has increased by more than 150,000 bbl/d to reach 1.86 MMbbl/d. Port of Houston exports also have been rising since the third quarter of last year, but remain below pre-pandemic levels, Rystad added.
"The call on U.S. crude could go even higher, if additional restrictions like secondary sanctions are implemented" against Russia, said energy strategist Clay Seigle, citing Vortexa data.
Crude exports will continue to grow and approach 4 MMbbl/d in the first three months of 2023, Rystad estimates.
2022-09-26 - An employee of Axis Energy Services was killed in an accident at Exxon Mobil's East Texas oil drilling facility on Sept. 20.
2022-08-29 - Here’s a roundup of the latest E&P headlines including the availability of new blocks in Brazil and contract wins from the past week in the upstream oil and gas industry.
2022-09-20 - Space-age thinking makes it possible to control a subsea robot without an umbilical for subsea oil and gas inspection, maintenance and repair work.
2022-08-23 - System uses space-age guidance technology to help oil and gas drillers land their wellbores in the right location.
2022-08-09 - The MEAs program recognizes new products and technologies designed by companies and people who understand the need for newer, better and constantly changing technological innovation to appease the energy-hungry world.