{"id":28398,"date":"2017-11-29T07:23:19","date_gmt":"2017-11-29T12:23:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=28398"},"modified":"2017-11-29T07:23:19","modified_gmt":"2017-11-29T12:23:19","slug":"u-s-oil-has-one-fatal-weakness","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=28398","title":{"rendered":"U.S. Oil Has One Fatal Weakness"},"content":{"rendered":"

U.S. Oil Has One Fatal Weakness<\/a><\/h3>\n\"Midland\"<\/picture>\n
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U.S. crude oil production is again on the rise, and exports of American crude are smashing records.<\/p>\n

But most of the U.S. oil production is light tight oil, and American exports\u2014especially those of very light sweet crude\u2014may hit a demand constraint next year, Bill Barnes<\/a>, director of energy consultancy Pisgah Partners, writes in Petroleum Economist.<\/p>\n

Oil production in the U.S. is currently expected to reach an all-time high at an average 9.9 million bpd<\/a> next year. In recent weeks, U.S. crude oil exports beat records<\/a>, and surpassed the 2-million-bpd<\/a> mark for the first time ever in the week to October 27.<\/p>\n

Last year, 51 percent of the 8.4 million bpd of crude oil produced in the Lower 48 States was light oil<\/a>, or less dense oil with an API gravity of 40.1 or above, EIA data shows. The higher the API gravity, the lighter<\/a> the oil. So far this year, much of the lower 48 states\u2019 crude oil production had 30.1 or higher<\/a> API gravity.<\/p>\n

Due to the wide discount<\/a> of the U.S. benchmark WTI to Brent in recent months, American exports have seen record-high levels.<\/p>\n

Yet, according to Pisgah Partners\u2019 Barnes, there are several demand and supply factors that may limit the buyers\u2019 willingness to import extra light U.S. oil.<\/p>\n

One is that Libya and Nigeria\u2014the two members exempt from OPEC\u2019s production cuts\u2014have started to gradually recover their production that had been plagued by militant and civil strife last year. And they are exporting light sweet crude oil varieties to refiners.<\/p>\n

Also, consumption of various oil products outside the U.S. \u201cargue for processing middle-gravity crudes such as Arab Light, Iranian Light and Russian Urals, rather than extra-light barrels such as 48\u00b0API gravity Eagle Ford,\u201d Barnes said.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

U.S. Oil Has One Fatal Weakness U.S. crude oil production is again on the rise, and exports of American crude are smashing records. But most of the U.S. oil production is light tight oil, and American exports\u2014especially those of very light sweet crude\u2014may hit a demand constraint next year, Bill Barnes, director of energy consultancy […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[17229,589,596,5332,17231,17230,14603,17232,1474],"class_list":["post-28398","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-bill-barnes","tag-oil-demand","tag-oil-supply","tag-oilprice-com","tag-petroleum-economist","tag-pisgah-partners","tag-tsvetana-paraskova","tag-us-crude-oil-exports","tag-us-oil-production"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28398"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28398\/revisions"}],"predecessor-version":[{"id":28399,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/28398\/revisions\/28399"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=28398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=28398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}