Bruzilla
Well-Known Member
- Local time
- 12:54 PM
- Joined
- Jan 11, 2012
- Messages
- 7,644
- Reaction score
- 7,817
- Location
- Orange Park, FL
https://www.nytimes.com/2017/07/05/business/energy-environment/oil-exports-corpus-christi-texas.html
"Oil exports grew slowly through most of 2016, but this year there has been a surge reaching 1.3 million barrels a day — roughly 15 percent of domestic production — which even at today’s depressed prices is worth more than $1.5 billion a month.
"Suddenly buyers from all over the world are purchasing the new American supplies, from South Korea to India — even oil-rich Venezuela, which uses the light sweet crude that comes out of American shale to blend with its gooey heavy crude. The light crude is highly prized even while global oil markets are saturated. Canadian oil sands, which also tend to be heavy, are being increasingly produced and need to be mixed with lighter crudes.
"European countries are looking to American exports to reduce their dependence on oil from Russia and African countries that produce light crudes, particularly Libya and Nigeria, which are politically unstable and unreliable suppliers. And China, with slumping oil production and rising demand, wants a more reliable source than the Persian Gulf, which it now depends on.
As the Organization of the Petroleum Exporting Countries cuts production to prop up oil prices, American exports are beginning to elbow out Saudi crude in some markets, a development that would have been inconceivable four decades ago when OPEC oil embargoes threatened to cripple the American economy."
The Saudis sweat market share over everything else, and if they're losing market share they have one option... lower costs.
"Oil exports grew slowly through most of 2016, but this year there has been a surge reaching 1.3 million barrels a day — roughly 15 percent of domestic production — which even at today’s depressed prices is worth more than $1.5 billion a month.
"Suddenly buyers from all over the world are purchasing the new American supplies, from South Korea to India — even oil-rich Venezuela, which uses the light sweet crude that comes out of American shale to blend with its gooey heavy crude. The light crude is highly prized even while global oil markets are saturated. Canadian oil sands, which also tend to be heavy, are being increasingly produced and need to be mixed with lighter crudes.
"European countries are looking to American exports to reduce their dependence on oil from Russia and African countries that produce light crudes, particularly Libya and Nigeria, which are politically unstable and unreliable suppliers. And China, with slumping oil production and rising demand, wants a more reliable source than the Persian Gulf, which it now depends on.
As the Organization of the Petroleum Exporting Countries cuts production to prop up oil prices, American exports are beginning to elbow out Saudi crude in some markets, a development that would have been inconceivable four decades ago when OPEC oil embargoes threatened to cripple the American economy."
The Saudis sweat market share over everything else, and if they're losing market share they have one option... lower costs.
