Today the EIA (Energy Information Administration) reported, that crude oil exports from the U.S. have nearly doubled since 2016. In 2017, the U.S. exported 1.1 million barrels of crude per day on average. How did this occur, the EIA states that, “U.S. crude oil exports were supported by increasing U.S. crude oil production and expanded infrastructure.”
Referencing the chart above, Canada imported the largest amount of U.S. crude in 2017. According to the EIA, crude oil exports to Canada dropped “…from 61% in 2016 to 29% in 2017…U.S. crude oil exports to China accounted for 202,000 b/d (20%) of the 527,000 b/d total increase. China surpassed the United Kingdom and the Netherlands to become the second-largest destination for U.S. crude oil exports in 2017.”
Based on new infrastructure, U.S. pipeline expansions have contributed to oil production reaching 9.3 million barrels per day last year. The American Petroleum Institute (API) recently reported the production of new infrastructure will continue to grow rapidly and continued investments could cost anywhere between $79 billion to $100 billion annually from 2017 to 2035.
A study that was released earlier this week by API has said that the increase in rapid infrastructure development could cost over $1.34 trillion over the next 18 years. Contributing factors include, leasing equipment, gathering and processing facilities, pipelines, storage facilities, refineries and export terminals. The development could also create over 1 million jobs across the U.S.
In order for U.S. crude oil production to continue its climb, there will have to be a continuation of pipeline expansion and additions made in the near future. By 2035 the U.S. could be producing 12 million barrels per day.