Laura Bell
Statistics Editor
Record refinery runs and rising global demand for petroleum products from the US in 2015 has increased net petroleum product exports.
In this year's first 4 months, 4.1 million b/d of petroleum products were exported, a rise of 500,000 b/d from same period last year. Statistics show that petroleum product imports are greater than a year ago, causing an increase in net petroleum product exports. According to data from the US Energy Information Administration for week ending July 3, petroleum product imports were 2.306 million b/d compared with 1.803 million b/d for same period last year, a 28% growth. Imports of petroleum products cumulative through July 3 were 2.09 million b/d compared with 1.84 million b/d a year ago.
Cumulative product supplied of total petroleum products is 4.3% higher than last year. Finished motor gasoline up 3.7% at 9.035 million b/d compared with 8.712 million b/d; distillate up 3.2%, at 4.008 million b/d vs 3.884 million b/d in 2014; and kerosene jet fuel up 6%, at 1.542 million b/d compared with 1.455 million b/d a year ago.
Import-export patterns
Patterns of both importing and exporting petroleum products differ by region, with the Gulf Coast (PADD 3) exporting the most at 2.902 million b/d in 2014, while the East Coast (PADD 1) imported the greatest at 1.002 million b/d.
The majority of the US refining capacity is positioned in PADD 3 and about 75% of the US petroleum products were also exported from this region. Based on data through April, petroleum product exports increased 444,000 b/d for the Gulf Coast compared with the same period last year. The increase was due to exports of gasoline, distillate, and jet fuel. The majority of the gasoline and distillate exports were shipped to countries in the Western Hemisphere. Jet fuel exports that are primarily shipped to Western Europe and Central and South America have largely improved. Asia imported propane and naphtha from the US, each up more than 150,000 b/d over a year ago.
Imports of petroleum products are an integral part of supply for the East Coast. Motor gasoline product supplied in comparison to last year, risen by 70,000 b/d. In order to keep up with demand, total motor gasoline (blending components and finished gasoline) imports have increased over 115,000 b/d from a year ago.
West Coast petroleum product markets are normally balanced, with regional refinery production keeping up with regional demand. Because there are no pipelines that cross the Rocky Mountains, the West Coast is ultimately inaccessible to other energy markets. Distillate fuel supply in the past couple of years have exceeded demand, therefore exports have risen. An average of 117,000 b/d of distillate fuel has been exported this year, similar to the last 2 years but higher by 37,000 b/d than in 2012.
When the supply of petroleum products are interrupted for various reasons, the West Coast must import product in order to meet the regional demand that the regional refineries cannot match. For example, due to the refinery outage in mid-February of ExxonMobil Corp.'s refinery in Torrance, Calif., imports of motor gasoline to the West Coast increased on average by 37,000 b/d so far this year. This is double the import rate over last year.
According to EIA, "over the past decade, domestic output of petroleum products has grown significantly, while consumption has declined, driving a major increase in net products exports." Both refinery output and product consumption will be the determining factors of whether this trend of rising net export of petroleum products continues.