The US became a net energy exporter for the first time in 60 years during November and produced a record 12.9 million b/d of crude oil, the American Petroleum Institute said Dec. 19 as it released its 2019 fourth quarter industry outlook and latest monthly statistical report.
“Never before has a major energy-consuming nation also become a top global exporter of total energy – usually it’s the other way around,” API Chief Economist Dean Foreman said. “The fact that US production has been able to simultaneously satisfy strong domestic demand and supply continued international demand for US exports while maintaining relatively low and stable prices is remarkable and historic in magnitude.”
With solid productivity and expanded pipeline infrastructure, the nation is in a position to continue its oil and gas production growth in 2020 as predicted by the US Energy Information Administration, the quarterly industry outlook said.
It found that US energy exports have continued to grow despite trade frictions. “Nationwide, natural gas demand for electricity generation increased 5.65 year-to-year so far in 2019, reflecting its cost competitiveness,” the outlook indicated.
Domestic petroleum demand remained near record peaks throughout 2019, it said. The US refining system is well-positioned to meet 2020 International Maritime Organization (IMO) sulfur reduction requirements due to its relatively complex plant, access to attractive crude feedstocks, abundant and inexpensive natural gas, and the best refining workers globally, API’s latest quarterly industry outlook said.
“Motor gasoline and diesel fuel prices have generally moved with crude oil, and EIA expects limited impact from IMO 2020,” API’s latest quarterly industry outlook said. “Since 2000, US distillate stocks have remained above 100 million bbl with an increasingly interconnected supply chain and pipeline network.”
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