Why record US oil exports are poised for even more growth

NEW YORK/ HOUSTON: US refineries are producing more fuel than ever as they seek to meet rising demand – from overseas, rather than the drivers on nearby roadways.

Last year, the US became the world’s top net exporter of fuel, an outgrowth of booming domestic production since the shale oil revolution started in 2010.

That’s a fundamental shift from the traditional US role in global markets as a top importer and consumer.

Net exports are on track to hit another record in 2017, making foreign fuel markets increasingly important for the future growth prospects and profit margins of US refiners.

Shale oil producers have provided refiners with abundant and cheap domestic crude supplies, giving them the raw material they need to produce internationally competitive fuel.

The nation set a record in 2016 by sending a net 2.5 million barrels per day ( bpd) of petroleum products to foreign markets.

That compares to net fuel imports of 2.3 million just a decade ago, according to US government data.

Booming exports have bolstered margins at the biggest US refiners – including Marathon Petroleum and Valero – and compensated for lack of strong growth this year in US fuel demand.

Now, the government of US President Donald Trump is seeking to deregulate oil and gas production to further leverage rising US exports for international political gain – a policy Trump calls ‘energy dominance’.