Rising U.S. Crude Exports Move Closer to 1957 Record

Oil tanker approaching FPSO - Image Credit - Jon Olav Eikenes

Oil tanker approaching FPSO – Image Credit – Jon Olav Eikenes

By Lynn Doan and Dan Murtaugh – Oct 1, 2014 – Bloomberg

U.S. oil exports are set to surpass a record held since 1957 as traders find ways around a four-decade ban on supplies leaving the country.

The U.S. sent 401,000 barrels a day abroad in July, 54,000 shy of the record set in March 1957, according to data compiled by the Energy Information Administration, the Energy Department’s statistical unit. WhileCanada accounted for 93 percent of the shipments, Italy, Singapore andSwitzerland also took oil from U.S. ports. Coupled with Alaskan supplies bound forAsia, total U.S. exports will reach 1 million barrels a day by the middle of 2015, according to Citigroup Inc. (C)

Shipments abroad have quadrupled from a year ago as U.S. drillers pull record volumes of crude and natural gas out of shale formations across the middle of the country using hydraulic fracturing and horizontal drilling. Exemptions to a federal ban on crude exports allow for deliveries to Canada and permits some shipments from Alaska and California. The Commerce Department also issued rulings this year allowing processed condensate, an ultra-light crude, to be sent overseas.

“You have the condensates, some Alaska North Slope oil and the exports to Canada,” Amrita Sen, chief oil analyst at Energy Aspects Ltd., a London-based research company, said by phone yesterday. “We can have record-high numbers by the end of the year.”

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