U.S. Gulf Coast crude oil imports in October fell to the lowest level in more than a year as the nation's production and exports soared, data from Refinitiv Eikon and market intelligence firm Kpler show.
Crude imports in the Gulf Coast, or PADD 3 region, averaged 2.35 million barrels per day (MMbbl/d) in October, down from 2.71 MMbbl/d the month before and the lowest since September 2017, Refinitiv data show.
Booming U.S. shale oil production has triggered pipeline bottlenecks in the Permian Basin and Bakken fields, pushing domestic light, sweet crude prices $10 per bbl cheaper than the global benchmark Brent. U.S. refiners have boosted their purchases in response.
"They can't process that much of the lighter crude, but if it's cheap enough, they'll figure out how to blend it in and use more of it," said Sandy Fielden, an energy analyst at research firm Morningstar.
U.S. crude production last week reached a record 11.7 MMbbl/d, and nationwide refinery utilization was 90.1%, up from 88.8% a month ago, the Energy Information Administration said on Nov. 15.
Crude exports loaded at ports along the Gulf Coast rose to 1.9 MMbbl/d last month from 1.7 MMbbl/d the previous month and the highest level since June. Shipments from the Gulf Coast to Europe was the highest since May, at 457,000 bbl/d, Refinitiv data showed.
"At a certain price, the lighter crude makes sense" for Gulf Coast refiners, said John Auers, executive vice president at consultancy Turner, Mason & Co. "If a domestic barrel is more economic to process than a foreign barrel, they'll definitely process that domestic barrel."
Recommended Reading
Baker Hughes Declares Increased Quarterly Dividend
2024-02-02 - Baker Hughes’ dividend represents a 5% growth rate, or $0.01, over the previous quarter’s dividend.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
The OGInterview: Petrie Partners a Big Deal Among Investment Banks
2024-02-01 - In this OGInterview, Hart Energy's Chris Mathews sat down with Petrie Partners—perhaps not the biggest or flashiest investment bank around, but after over two decades, the firm has been around the block more than most.
Bobby Tudor on Capital Access and Oil, Gas Participation in the Energy Transition
2024-04-05 - Bobby Tudor, the founder and CEO of Artemis Energy Partners, says while public companies are generating cash, private equity firms in the upstream business are facing more difficulties raising new funds, in this Hart Energy Exclusive interview.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.