trending Market Intelligence /marketintelligence/en/news-insights/trending/awd3ps9gs1bwppbzo0ei2g2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

US crude exports seen driven higher by OPEC output cuts

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

US crude exports seen driven higher by OPEC output cuts

OPEC-initiated production cuts have paved the way for a jump in crude exports from the U.S., as the West Texas Intermediate-linked crude became more economically viable than the Dubai, United Arab Emirates-linked output of traditional oil producers.

Speaking at the Philippines Energy Forum in Manila on March 20, S&P Global Platts' managing editor for crude oil, Ada Taib, said the U.S. has been a major beneficiary of the OPEC production curtailment.

Toward the end of 2016, OPEC and non-OPEC allies agreed to freeze production at about 32.5 million barrels per day for six months starting in January 2017. The agreement has since been extended twice and will remain in force until the end of 2018.

Incentivized by the lifting of the U.S. crude export ban in late 2015 and the subsequent OPEC production restrictions, the U.S. rig count rose to 20-month highs in early 2017 and annual crude exports reached "unprecedented levels" of about 1 MMbbl/d, roughly doubling year on year.

U.S. crude has become more economically viable for Asian markets than products from the Middle East, as the Dubai benchmark that previously traded at a discount to the West Texas Intermediate grew a premium in 2017 after the oil production cuts were put in place, Taib said.

Of the roughly 400 MMbbl exported by the U.S. in 2017, about 140 MMbbl flowed into Asia, Taib said. China received the bulk of the exports at 81 MMbbl, up from less than 8 MMbbl in 2016, followed by South Korea that claimed 21 MMbbl, from less than 4 MMbbl in 2016. New importing countries Malaysia, Taiwan and Hong Kong joined the ranks of U.S. crude importers.

US crude helps turn global crude slate lighter

As the market share of U.S. crude increased and the production of medium and heavy crude was curtailed by the OPEC agreement, the global crude slate has become lighter, S&P Global Platts Content Director Sebastian Lewis said in a separate session at the Philippines Energy Forum.

While U.S. shale production that includes light crude and natural gas liquids has enjoyed steady growth over the recent years, medium and heavy crude production declined for the first time in 2017 following the OPEC-initiated output cuts.

Discussing the yield of lighter products, Lewis said residues have become more scarce and naphtha more abundant in 2015 through 2020, compared to 2010 to 2015, helped by increased conversion capacity.

U.S. shale output is forecast to continue growing to 14 MMbbl/d in 2025 led by the Permian region, driving soaring exports. The repeal of the U.S. crude export ban combined with shale production growth to encourage the flow of U.S. crude into major destinations in Asia and Europe, a trend that is expected to continue into the 2020s, Lewis said.

Demand growth in Asia is expected to be increasingly met by sweet exports from the Atlantic Basin, which include the Americas, Africa and Europe. "The Atlantic Basin will become net long crude and increasingly supply the Asian short," Lewis said.

S&P Global Platts and S&P Global Market Intelligence are owned by S&P Global Inc.