US Oil & Gas Production Outpaces Domestic Demand, Export Markets Expected to Expand
Proximity to Permian & Eagle Ford basins could make Corpus Christi, TX leading export terminal
Media Contact: Jon Haubert | 303.396.5996
Austin, TX (June 5, 2018) – Drillinginfo, the leading energy SaaS and data analytics company, has released its latest FundamentalEdge series report, US Exports. The report confirms that crude oil exports have indeed grown since the export ban was lifted in December 2015 and breaks down the role US energy commodities will play in international markets. Drillinginfo analysts caution, however, infrastructure additions are severely needed to allow the supply surplus to reach its overseas markets.
“This is your classic bottleneck challenge,” said Bernadette Johnson, Vice President of Market Intelligence at Drillinginfo. “The US needs to focus on large scale infrastructure and corridors to move hydrocarbons to key coastal locations so exports can continue and not negatively affect operators prices,” said Johnson.
Key Takeaways from Drillinginfo’s FundamentalEdge report, US Exports:
- Growth in US oil and gas supply persists on the back of continued improvement in production economics by E&P companies. This growth is outpacing domestic demand and therefore forcing market players to find new homes for their commodities outside the US.
- Crude oil exports have grown since lifting the export ban in Dec 2015. Going forward most incremental growth in oil production is expected to be exported. Lighter quality crude produced in US shale basins is better suited for refinery fleets in Asia and Europe. As such, continued US supply growth is likely to be exported rather than displacing currently imported volumes.
- The US became a net exporter of natural gas in early 2017. On an annual basis, pipeline flows to Mexico and LNG exports now surpass total volumes imported from Canada. Further LNG liquefaction capacity additions will be the largest contributor to US exports in the near term.
- For NGLs, strong production growth coupled with high prices in destination markets has prompted significant export development projects for Ethane, LPGs and Pentanes plus. This will entice more NGLs to find a market outside of the US.
Members of the media can download an overview of US Exports and its key findings, or contact Jon Haubert to schedule an interview with one of Drillinginfo’s market analysts.
Drillinginfo delivers business-critical insights to the energy, power, and commodities markets. Our state-of-the-art SaaS platform offers sophisticated technology, powerful analytics, and industry-leading data. Our solutions deliver value across upstream, midstream and downstream markets, empowering exploration and production (E&P), oilfield services, midstream, utilities, trading and risk, and capital markets companies to be more collaborative, efficient, and competitive. Drillinginfo delivers actionable intelligence over mobile, web, and desktop to analyze and reduce risk, conduct competitive benchmarking, and uncover market insights. Drillinginfo serves over 3,500 companies globally from its Austin, Texas, headquarters and has approximately 650 employees. For more information visit drillinginfo.com.