Crude oil storage at Cushing has dropped 12 million barrels since the start of the year. It peaked at 52 million and is now 40 million and heading downward rapidly by about 2 million barrels a week. Just wait until the XL super sucker starts up at the end of year!
You really cant export excess crude. its against US law. The excess gets to the GC , where it backs out some type of Crude Import. There is still plenty of crude coming into PAD II from oversees, and all it takes is $5-6/bbl discount to run the Perm Basin/ Eagle Ford crude instead. What can be exported is the finished products. So the refineries on the GC are going to run full, as long as the products can be shipped to destination at lower than local fuel costs. Western has a local advantage in selling clean product in their geographic refining area. nobody else there, and anyone wanting to compete would just as soon export product rather than run a truck distribution network all over Indian Country.
Hi bogey, good to hear from you.
Congress put a ban on export of US crude oil long ago, with a few minor exceptions. With all the new drilling that ban may be lifted in a few years.
You can export the refined product, but not the crude oil. GLTY