Released April 14, 2025 | SUGAR LAND
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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--And another one's down, and another one's down. It seems Queen's legendary 1980 anthem could apply to the 2024 numbers for the U.S. oil and gas industry. The sector set records for natural gas production, consumption, and exports. It also set records for crude oil production, and as announced on April 10, for crude oil exports. All that data comes from the U.S. Energy Information Administration (EIA).
Crude oil exports have been on a general upward climb since the 1975 export ban was lifted in late 2015. The ban was part of the Energy Policy and Conservation Act, enacted as a response to the OPEC oil embargo of the mid-1970s. In 2015, it was deemed unnecessary, as the shale revolution was pushing U.S. production higher, reducing the need to hoard oil against future import restrictions.
In 2024, the U.S. exported just over 4.1 million barrels per day (BBL/d), a number that surpassed the previous record, set in 2023. Even though there was year-over-year growth, the rate of that growth is slowing, said the EIA. The EIA said, "Despite this new record, crude oil export year-over-year growth slowed to 1% in 2024, compared with 14% in 2023 and 21% in 2022."
With tariff percentages and start dates bouncing around and much of that focused on world crude import leader China, the first question may be about how much U.S. crude went there in 2024--and the truth is, not much, comparatively speaking. As recently as 2023, Beijing was second on the list of U.S. oil recipients. But U.S. exports to China dropped by 53% in 2024.
Demand dropped for two reasons, demand and trading partners. Economic headwinds that, while not constituting a recession, did involve a notable slowdown in economic growth compared to previous years. Also, Beijing in 2024 began a major push toward transitioning private vehicles to electric vehicles (EVs), and commercial vehicles to liquefied natural gas (LNG) or compressed natural gas (CNG).
On the trading partner front, the EIA said China increased oil imports from Malaysia and Russia.
China landed eighth on the list of top U.S. crude oil recipients in 2024. Who were the top seven?
The Netherlands leads the list, receiving 825,000 BBL/d, 32% more than in 2023. That is not as strange as it seems. The Port of Rotterdam is home to a large crude oil storage and trading hub, which receives a total of 95-100 million tonnes per year, according to the port website. That translates roughly to 702.5-742 million BBL/d. Much of that goes to refineries in the port itself, as well as refineries in Germany and Belgium.
Next, in order, were South Korea, Canada, the United Kingdom, Singapore, India and Taiwan, just ahead of China.
What increases offset the loss of 53% of China's business? Europe was one, increasing by 6% to 1.93 million BBL/d. Decreases in crude oil to Spain, France and Italy were more than offset by increases to Germany and the U.K. in addition to the Netherlands.
India also received more, with exports there rising by 32% over previously low numbers in 2022 and 2023. Rising demand, along with less reliance on Russian oil, caused them to turn more to the U.S. Asia overall was down by 131,000 BBL/d to 1.58 million BBL/d, as increases in India, South Korea, and Singapore were overtaken by the decreases to China.
Where does that put the import/export balance for crude oil? While the EIA has yet to release 2024 import numbers, the EIA's 2023 report showed that the U.S. imported about 6.48 million BBL/d of crude, while exporting 4.06 million BBL/d.
But the larger picture, when including what the EIA defines as petroleum rather than just crude, show the U.S. as a net exporter. In 2023, it exported 10.15 million BBL/d of petroleum, which includes crude oil, hydrocarbon gas liquids (HGLs), refined petroleum products such as gasoline and diesel fuel, and biofuels.
The outlook for 2025 is murky, said the EIA in its Short Term Energy Outlook (STEO), released on April 10. That's because the shifting landscape of tariffs is destabilizing crude oil prices, which had dropped low enough that U.S. producers have begun to announce that they are reevaluating drilling programs because the recent prices could make further drilling uneconomic. That could reduce the amount of oil produced, and, therefore, the amount available for export.
Plus, the STEO is predicting a slowing in the growth rate of energy demand worldwide in 2025.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Crude oil exports have been on a general upward climb since the 1975 export ban was lifted in late 2015. The ban was part of the Energy Policy and Conservation Act, enacted as a response to the OPEC oil embargo of the mid-1970s. In 2015, it was deemed unnecessary, as the shale revolution was pushing U.S. production higher, reducing the need to hoard oil against future import restrictions.
In 2024, the U.S. exported just over 4.1 million barrels per day (BBL/d), a number that surpassed the previous record, set in 2023. Even though there was year-over-year growth, the rate of that growth is slowing, said the EIA. The EIA said, "Despite this new record, crude oil export year-over-year growth slowed to 1% in 2024, compared with 14% in 2023 and 21% in 2022."
With tariff percentages and start dates bouncing around and much of that focused on world crude import leader China, the first question may be about how much U.S. crude went there in 2024--and the truth is, not much, comparatively speaking. As recently as 2023, Beijing was second on the list of U.S. oil recipients. But U.S. exports to China dropped by 53% in 2024.
Demand dropped for two reasons, demand and trading partners. Economic headwinds that, while not constituting a recession, did involve a notable slowdown in economic growth compared to previous years. Also, Beijing in 2024 began a major push toward transitioning private vehicles to electric vehicles (EVs), and commercial vehicles to liquefied natural gas (LNG) or compressed natural gas (CNG).
On the trading partner front, the EIA said China increased oil imports from Malaysia and Russia.
China landed eighth on the list of top U.S. crude oil recipients in 2024. Who were the top seven?
The Netherlands leads the list, receiving 825,000 BBL/d, 32% more than in 2023. That is not as strange as it seems. The Port of Rotterdam is home to a large crude oil storage and trading hub, which receives a total of 95-100 million tonnes per year, according to the port website. That translates roughly to 702.5-742 million BBL/d. Much of that goes to refineries in the port itself, as well as refineries in Germany and Belgium.
Next, in order, were South Korea, Canada, the United Kingdom, Singapore, India and Taiwan, just ahead of China.
What increases offset the loss of 53% of China's business? Europe was one, increasing by 6% to 1.93 million BBL/d. Decreases in crude oil to Spain, France and Italy were more than offset by increases to Germany and the U.K. in addition to the Netherlands.
India also received more, with exports there rising by 32% over previously low numbers in 2022 and 2023. Rising demand, along with less reliance on Russian oil, caused them to turn more to the U.S. Asia overall was down by 131,000 BBL/d to 1.58 million BBL/d, as increases in India, South Korea, and Singapore were overtaken by the decreases to China.
Where does that put the import/export balance for crude oil? While the EIA has yet to release 2024 import numbers, the EIA's 2023 report showed that the U.S. imported about 6.48 million BBL/d of crude, while exporting 4.06 million BBL/d.
But the larger picture, when including what the EIA defines as petroleum rather than just crude, show the U.S. as a net exporter. In 2023, it exported 10.15 million BBL/d of petroleum, which includes crude oil, hydrocarbon gas liquids (HGLs), refined petroleum products such as gasoline and diesel fuel, and biofuels.
The outlook for 2025 is murky, said the EIA in its Short Term Energy Outlook (STEO), released on April 10. That's because the shifting landscape of tariffs is destabilizing crude oil prices, which had dropped low enough that U.S. producers have begun to announce that they are reevaluating drilling programs because the recent prices could make further drilling uneconomic. That could reduce the amount of oil produced, and, therefore, the amount available for export.
Plus, the STEO is predicting a slowing in the growth rate of energy demand worldwide in 2025.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
