US petroleum product exports set record high in 2018 - EIA
EIA said that US exports of total petroleum products set a record high in 2018, reaching an annual average of 5.6 million barrels per day, an increase of 366,000 barrel per day from 2017 levels. The three largest petroleum product exports from the United States in 2018 were distillate, propane, and motor gasoline. US exports of motor gasoline (including blending components) and propane reached record highs in 2018, and exports of distillate reached their second-highest volume on record, following the high set in 2017. Total US petroleum product exports set a record high in 2018 for the 16th consecutive year. From 2009 to 2013, distillate exports contributed the most to annual growth.
However, from 2014 to 2018, exports of hydrocarbon gas liquids, which include propane, drove US petroleum product export growth.
As US crude oil production increased over the past decade, gross inputs into refineries also increased. Petroleum products can be used domestically, exported, or put into inventory. In 2018, record-high levels of US crude oil production and refinery runs helped refiners export large volumes of petroleum products, even with high levels of domestic demand.
Despite an 80,000 barrel per day decrease in exports in 2018 from 2017, distillate remained the most exported petroleum product in 2018, averaging 1.3 million barrel per day, or approximately 25% of US refinery net production. Distillate exports were still more than 100,000 b/d higher than the previous five-year average (2013–2017). The United States exported distillate to 64 destinations in 2018, with the largest volumes destined for Mexico.
Mexico received an average of 298,000 barrel per day, or 23% of US distillate exports, increasing 42,000 barrel per day from 2017. Mexico’s increasing exports were likely driven by the country’s refineries that continued to operate below capacity in 2018, as reported by trade press. Brazil received the second-largest share of distillate exported from the United States, averaging 151,000 barrel per day (12% of US distillate exports), down by 57,000 barrel per day from 2017. Chile, Peru, and the Netherlands comprise the remainder of the top five recipients of US distillate exports.
US propane exports reached a record high of 972,000 barrel per day in 2018, surpassing the previous record of 914,000 barrel per day set in 2017. Propane exports in 2018 were greater than motor gasoline exports for the third consecutive year, and propane remained the second-largest US petroleum product export.
Unlike other US petroleum product exports, which tend to stay in the Western Hemisphere, significant volumes of US propane often reach Asian markets. Three of the top five destinations are in Asia. Propane is used in many Asian countries as a feedstock for producing ethylene and propylene, which are building blocks for chemical and plastic manufacturing.
Source : Strategic Research Institute