In October 2017, crude oil exports from the US reached a monthly record of more than 1.7 million barrels per day, with the largest increases in US crude oil exports being to Asia, followed by Europe, according to US EIA’s Petroleum Supply Monthly data.
This was noticed on the aftermath of hurricane Harvey which caused disruptions to the US Gulf Coast refining sector from late August through September 2017, resulting in record-high US crude oil exports when export facilities reopened and before many refineries returned to pre-storm levels of utilization.
Namely, exports to Asian countries accounted for 35% of total US exports of crude oil in the first eight months of 2017, averaging 312,000 b/d. In September and October, exports to Asia accounted for 40% of total US exports of crude oil, averaging 636,000 b/d, or more than double their pre-Harvey levels.
Similarly, exports to European countries accounted for 22% of total US exports of crude oil in the first eight months of 2017, averaging 193,000 b/d. In September and October, exports to Europe averaged 510,000 b/d, which accounted for 31% of US exports of crude oil.
In previous years, Canada received most of the US crude oil exports because it was exempt from restrictions on exporting US crude oil. When certain restrictions on US crude oil exports were lifted in December 2015, US exports of crude oil increased and began reaching more destinations, EIA noted.
Aside from Canada, countries in Asia and Europe have been some of the largest recipients of US crude oil since the restrictions were lifted. However, because of the way US Customs and Border Protection export data are reported, some nations listed as receiving crude oil exports from the United States in EIA statistics, such as Singapore and Netherlands, may not be final destinations.
Many refineries in the US Gulf Coast either reduced operations or shut down leading up to or in the immediate aftermath of the hurricane. From August through September, gross inputs to refineries in the Gulf Coast region fell by 1.1 million b/d, a 13% decrease. Over the same period, regional crude oil inventories increased by 6.9 million barrels.
Although many export facilities in the Gulf Coast reduced operations or shut down because of Harvey, export facilities returned to operation following the hurricane faster than refineries. Exports of crude oil in August were the second lowest for 2017 at 772,000 b/d, but in September they reached a then-record high of 1.5 million b/d, most of which went to Asian markets. Inputs to refineries in the Gulf Coast region began reaching pre-Harvey levels in October.
With Gulf Coast refinery runs back to pre-Harvey levels and exports of crude oil reaching another record high in October of 1.7 million b/d, Gulf Coast crude oil inventories registered a draw of 19.9 million barrels. Most crude oil exports in October also went to Asia, providing evidence that the marginal competitive market for US crude oil is Asia. According to data in EIA’s Weekly Petroleum Status Report, from late October through the end of 2017, exports of crude oil and inputs to Gulf Coast refineries remained relatively high, resulting in a continued decrease in Gulf Coast crude oil inventories to continue to decrease.
