Shale production is surging in the United States, however it’s surging into pipeline bottlenecks, creating mass delivery issues. Pipeline shortages are having a particularly frustrating effect in Oklahoma and in the Texas Permian Basin, forcing some companies to truck barrels up to 500 miles in order to get it to the gulf coast. These bottlenecks are expected to last until 2019, or even 2020, and combined with a tight labor market for drivers, there is a finite limit to the amount of crude that could be used to help stabilize the international market.
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.”