Event highlights: USAEE Webinar: Oil Trade- Can the US Remain a Net Exporter?
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On January 26th, Vortexa Managing Director Clay Seigle presented at an event hosted by the United States Association for Energy Economics on the topic of the United States as a net oil exporter.
Clay was joined by BP Chief US Economist Michael Cohen. The discussion was moderated by Mark Finley of The Baker Institute’s Center for Energy Studies at Rice University. The panelists discussed the factors that led the United States in 2019 to become a net exporter of oil for the first time in more than 70 years, and whether the trend is likely to continue.
Key takeaways from the session:
While the United States is independent when it comes to light crude oil, it will still require substantial imports of heavy crude oil for the foreseeable future.
The United States is simultaneously long and short refined products on the Gulf and Atlantic coasts, respectively, owing to these regions’ unique supply-demand conditions and certain regulatory and infrastructure-related constraints on arbitrage between them.
The biggest factors to watch for continuing net exporter status are the pace of domestic versus international transportation demand recovery, the evolving competitive landscape of international and domestic refining economics, and potential increases in US oil production volumes and export capacity