Increased Refinery Throughput, NGL Production Boost U.S. Petroleum Product Exports

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Researched by Industrial Info Resources (Sugar Land, Texas)--Exports of petroleum products from the U.S. averaged a record 3.8 million barrels per day (BBL/d) in 2014, an increase of 347,000 BBL/d from 2013, according to the U.S. Energy Information Administration's most recent "Petroleum Supply Monthly" report.

Much of the increase was due to record U.S. refinery throughput. As oil prices decreased during the second half of the year, U.S. refiners processed a record 16.1 million BBL/d of crude oil in 2014.

Click on the image at right for a graph detailing the 2013-to-2014 change in selected petroleum product exports.

While distillates such as diesel traditionally have been one of the leading refining product exports, the situation changed in 2014, with the first decline since 2004.

In the past, much of the U.S. distillate exports were destined for Western Europe, but as the price of crude fell and refining margins improved in the second half of 2014, beleaguered European refiners increased their refining throughput, providing more locally produced distillates. In addition, new refining capacity was brought online in the Middle East. This included new diesel production capacity at Saudi Aramco's (Dhahran, Saudi Arabia) Yanbu SAMREF Refinery in Saudi Arabia, which came online in March last year, as well as at the company's Al-Jubail complex, which diminished the need for more expensive U.S. distillate imports in Europe.

However, declines in U.S. distillate exports were more than made up by increased exports of gasoline and natural gas liquids (NGL). The largest increase in gasoline exports was to Central America and South America, which increased 27%, or 42,000 BBL/d.

In addition, exports of NGL, such as propane and butane, have continued growing to record levels as U.S. production increases. Exports of propane to Asia nearly doubled from 2013 levels, pushing overall U.S. propane exports up by 121,000 BBL/d, or 40%. Exports of butane increased 149% to 74,000 BBL/d, with Africa the leading destination.

While U.S. crude oil exports remain an elusive future political policy, lower crude prices, increasing global demand and higher NGL production are paving the way for increased exports of U.S. petroleum products.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.