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United States of Export-erica

We take a look at US energy exports

United States of Export-erica


The U.S. had record net exports of energy products (oil, petroleum products, NGLs, natural gas) as of the most recent dataAs discussed previously there are complex reasons why the U.S. must import heavier blends of oil to closer match its refining configuration but the country is a healthy exporter of oil, products and natural gas overall'Energy Independence' has in effect tied U.S. energy prices to global prices, with the correlation likely getting tighter as U.S. exports increaseIncreasing U.S. energy production is unlikely to materially impact global energy prices over the short and medium-termMany in the market appear to be conflating lower prices during the 2008-2014 shale boom years with the situation on the ground todayDue to increased global exports today vs then, U.S. prices will be much harder to lower this time around.

By converting natural gas into barrel of oil equivalents (BOE), we calculated total U.S. energy exports (ex coal) to show the U.S. is exporting over 3 million BOEs today

The U.S. continues to be a net importer of oil, swapping light barrels for heavier ones

Petroleum products, however, have a large net export surplus.  Indeed, despite high domestic prices, the U.S. averaged 1.1 million barrels per day of distillate/diesel exports over the last month and 107,000 barrels per day of gasoline

Similarly, high natural gas prices aren't indicative of an undersupplied U.S. market, with the U.S. exporting over 12 million Bcf per day

Time will tell how this plays out, but Energy Independence may mean more for supply reliability than domestic prices as the U.S. interconnects with global markets and faces the impacts of energy decisions made elsewhere.