US oil competes in the global market

The growing oil production "shale" of the United States should pressure the country's refining capacity, while three quarters of the US oil production up to 2023 should be shipped to Europe and Asia, according to a new study by Wood Consultant Mackenzie.

The survey points to the continued impact of North American oil on global markets and the disparity between domestic refining capacity and the country's upward production. Oil can become a bottleneck for the US Gulf Coast ports, unless new infrastructure is built, the study officials said.

The American refineries will absorb between 900,000 barrels per day (bpd) and 1 million bpd, of the 4 million of BPD predicted in additional production of the U.S. oil fields, told Wood Mackenzie in the study, released on Monday.

This will leave three quarters of the additional oil, involving crude oil and the ultra type, known as condensed, intended for buyers from outside the US in the next five years, the researchers said. So US oil will compete with the oil of the Middle East and Africa in the world markets, they added.

The US refineries, who prefer to process medium and heavy oil, should not be able to handle all the additional light oil. The US has been slow to expand the processing capacity due to future drop projections in demand for gasoline.

Since at least 2014, ExxonMobil has considered an expansion of light oil refining capacity at the Beaumont refinery in Texas, but the project has not yet been approved.

Most of the crude and condensed oil exports will be destined for refineries in Europe up to 2022, and new barrels should arrive in Asia after that, according to the study. U.S. oil exports reached 2.1 million bpd at the end of last year. About half of the new capacity in the US, most of it of light oil, should come from the Permian basin in West Texas and New Mexico, according to Wood Mackenzie's senior analyst for markets in North America, John Coleman. Source: Exam

Follow everything that happens in the oil and gas market through the Offshore Panorama and get quality information and news about oil, gas, energies, pre-salt, fuels, gasoline, Petrobras and Offshore. Remember, your business goes through here. Check out:


6 thoughts on “US oil competes in the global market

Leave a Reply