Chief Economist Ed Rawle discusses the implications of the surge in US crude on global markets.
06 March 2018
US crude exports: Making waves
Since the lifting of the crude export ban in late 2015, US crude exports have grown rapidly. In Q3 2017 they reached a high of 2.1 million b/d, and given the ramp up in US onshore crude production expected over the next five years, exports are forecast to approach 4 million b/d by the mid-2020s. This in-depth study examines the key questions raised by this tectonic shift in the global oil market. -How much of the ramp up in US crude will be consumed by US refiners, and how much will need to clear into the global market via export? -What markets are likely to see the most significant inflows of US tight oil crude? -What crudes will get displaced and what discounts will be required for US crudes to compete?
Why buy this report?
US exports have surged into the global market in recent years and key questions are being raised such as what level will US crude exports reach? What markets will take US crude? Is there sufficient infrastructure to support the flood of crude exports destined for the gulf coast?
Our report discusses these questions and provides context around the implications of increasing US volumes in the global market and will give greater detail into:
The trajectory of US crude production and how much will enter the global market
Understanding how US crudes will price in various export markets
The current state of export infrastructure, where more is needed and which hub will see the greatest export volumes