U.S. is exporting crude and products from the Gulf Coast, Midwest, East Coast and West Coast
U.S. exports of crude oil and refined products have been setting records throughout 2918. Producers are sending larger volumes than ever overseas.
Yesterday’s announcement of a historic draw on crude oil inventories was in part fueled by an all-time record for crude oil exports, 3 MMBOPD over the week.
While shipments of refined products are currently slightly below the highs seen in November and December, this is the result of standard seasonal demand; total exports of refined products are up year-over-year.
In the U.S., the Gulf Coast dominates exports of petroleum. It does not have a monopoly, though, and other locations in the U.S. have begun shipping both oil and refined products out of the country.
West Coast shipped as much refined products as the Gulf in 1980s
The Midwest and West Coast are currently each shipping around 450 MBPD of crude and refined products, while the East Coast is shipping about 300 MBPD. These volumes pale in comparison to the Gulf Coast’s shipments, which approached 5.6 MMBPD, but are still significant.
The dominance of the Gulf Coast in shipping petroleum is essentially a given, but it was not always the case. In fact, in the 1980’s the West Coast and the Gulf shipped very similar volumes, each around 500 MBPD. The expansion of Gulf exports is a recent trend, the result of the shale-driven renaissance of the American oil and gas industry.
Source: EnerCom Analytics
Midwest ships to Canada, other regions are less consistent
As might be expected, the Midwest ships exclusively to Canada, supplying primarily refined products. About one quarter of Midwest exports are crude oil, comparable to the national average. Other regions ship to much more varied destinations.
The West Coast, for example, sent significant volumes to Canada, Mexico, South Korea, China, Japan and Panama last month. Only Canada, Mexico, Japan and China are consistent consumers, shipments elsewhere are highly variable. Unlike other regions, exports from the West Coast are exclusively refined products, the region has only made a handful of shipments of crude in the past 18 years.
The East Coast primarily ships to Canada as well, but also has sent significant volumes to the Netherlands and UK.
Like the West Coast, most exports from the East Coast are refined products, though the East has begun to ship crude oil as well. This is somewhat surprising, as the East Coast produces very small volumes of oil.
The EIA reports the East Coast produced an average of 52 MBOPD so far this year, compared to exports of 105 MBOPD in March. This oil, then, is almost certainly produced from fields in the Midwest or Gulf, that was transported to the East Coast, then exported.
Oil and refined products from the Gulf Coast are shipped throughout the world, with 89 different countries receiving at least one shipment so far this year. Mexico, China and Brazil each have consumed large volumes of Gulf petroleum, demanding a combined 2 MMBPD. Notably, shipments from the Midwest are not enough to satisfy Canadian demand, and the Gulf has sent an average of 258 MBPD to the country.
