HOUSTON: The United States has become a global crude oil exporting power over the last few years, but exports have not exceeded its imports since World War II. That could change next year.
Sales of US crude to other nations are now a record 3.4 million barrels per day (bpd), with exports of about 3 million bpd of refined products like gasoline and diesel fuel. The United States is also the leading liquefied natural gas (LNG) exporter, where growth is expected to soar in coming years.
But the United States consumes 20 million barrels of crude a day, the most in the world, and its output has never exceeded 13 million bpd. Until recently, the idea that it would be anything but a big crude importer was folly.
Last month, US government data showed net US crude oil imports fell to 1.1 million barrels per day (bpd), the lowest since record keeping began in 2001. That is down sharply from five years ago, when the United States imported more than 7 million barrels per day.
Factors changing that equation this year include sanctions hurting Russia's exports of oil and natural gas following its invasion of Ukraine, and Washington's massive release of oil from emergency reserves to combat spiking gasoline prices.
"Russia's invasion of Ukraine has spurred new demand for US energy and should push oil exports above imports late next year assuming shale output accelerates," said Rohit Rathod, market analyst at energy researcher Vortexa.
To become a net exporter of crude, the United States needs either to boost production or curtail consumption. US petroleum demand is expected to rise 0.7% to 20.51 million bpd next year, so that means production would have to rise.
The United States already produces more oil than any other country in the world including Saudi Arabia and Russia. US shale fields are aging and production growth this year has been sluggish. Overall output should reach a record 12.34 million bpd next year - but only if prices are lucrative enough to encourage oil drillers to pump more. — Reuters
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