It has only been two years since the U.S. government changed its position on American oil exports. Once the 40-year old ban was reversed, however, U.S. crude drillers wasted no time. Hundreds of tankers of American crude have since reached every part of the world. From tiny African countries to massive Asian ones such as India and China, American oil now fuels the world.
With American exports flooding world markets today, it’s hard to imagine that before the reversal of the ban, the U.S. imported 12.5 million bpd; those imports stand at a mere four million bpd today, most of it coming from Canada. While America may still be dependent on fossil fuel, it doesn’t depend on unstable Middle Eastern powers for it.
America Displaces Conventional Oil Exporters
Most experts today expect to see American crude output grow at 500,000 bpd through the end of this year. The Energy Department is even more aggressive in its estimate, seeing growth rise by 1.2 million bpd, most of which will be exported.
Unipec, the largest buyer of American crude in China, has stated that the firm expects to double its U.S. imports to 300,000 bpd in 2018. When China or India import U.S. crude, they displace conventional exporters such as Saudi Arabia or Nigeria. While China’s oil imports rose more than 10% in 2017, Saudi Arabia saw little more than a 2% rise in its exports to that country.
U.S. Drillers Keeping Up With Rapid Changes
According to Sigma Drilling Technologies, the oilfield technology major that is well-known as a dampener manufacturer, investing in preventive maintenance and improved efficiency is in evidence in today’s strong market. Drillers routinely invest to prevent pulsation dampener bladder failure.
Capital spending for shale drilling has grown very quickly over these past two years. With drillers investing in improving their operations and ramping up production, shale now accounts for nearly all of the capital expenditure seen in the U.S. energy industry.
