After adding roughly 100 million barrels of crude stocks in 2015, the high level of supply in the US continues to bubble over into 2016, according to Greg Haas, director of integrated oil and gas at Stratas Advisors.
“We import roughly 650,000 barrels a day of light crude. That light crude is the kind we have sitting in our storage tanks,” Haas said. Compared to five-year averages, the US had roughly 130 million more barrels in commercial storage at year-end 2015, he added. “That’s over 200 days’ worth of imports sitting in storage. So that’s an epic overhang.”
With refineries at peak ─ 91-plus percent for the year ─ exports are the only other option aside from cutting drilling, which has already happened, according to Haas.
“We’ve come off of zero [exports] in the last couple of years. We’re certainly exporting some light crude oil to Canada, which was always allowed. “We began exporting some processed condensate and crude to some new nations once that became possible through Enterprise Products, Pioneer and others,” he said. “At year-end last year, we were given the gift of a new regulatory allowance for crude exports without even having to process it. So that will possibly help some going forward as long as it makes economic sense.”
To view video click here
Recommended Reading
BPX’s Koontz: The Rise of a Shale Man
2024-07-02 - CEO Kyle Koontz takes the reins of BPX Energy’s rapid onshore growth amid big changes at BP.
The ABCs of ABS: Financing Technique Shows Flexibility and Promise
2024-07-29 - As the number of ABS deals has grown, so have investors’ confidence with the asset and the types of deals they are willing to underwrite.
Permian Consolidation Piques Interest in Drill-to-earn Opportunities
2024-08-14 - Drill-to-earn arrangements have been utilized in the Permian for years in the forms of joint ventures, farm-outs and other customizable agreements.
Private Producers Find Dry Powder to Reload
2024-09-04 - An E&P consolidation trend took out many of the biggest private producers inside of two years, but banks, private equity and other lenders are ready to fund a new crop of self-starters in oil and gas.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.