Permian frenzy drives U.S. crude exports to all-time high

By Stephen Cunningham on 6/6/2018

WASHINGTON (Bloomberg) -- Booming U.S. shale production is fueling record crude exports, with shipments reaching an all-time high of 1.76 MMbpd in April.

That’s up from 1.67 million in March, according to U.S. Census Bureau data released on Wednesday. Total exports reached 52.7 MMbbl for the month.

“Given that refiners are already running at or near full utilization, any increase in production is going to be destined for the export market,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “By December, we could easily be between 2 million and 2.5 MMbpd.”

On a weekly basis, U.S. crude shipments have already topped that threshold, reaching a record high of 2.57 MMbpd in the week ended May 11, according to the Energy Information Administration.

The recent U.S. decision to re-impose sanctions on Iran could create additional demand for U.S. exports, as crude buyers seek to replace Iranian barrels. But the challenge will be getting U.S. crude to the Gulf Coast for export, given pipeline constraints from the Permian basin and from the storage hub at Cushing, Okla.

Related News ///

FROM THE ARCHIVE ///

Comments ///

comments powered by Disqus