Texas responsible for 80 percent of oil exports from US
The Houston Ship Channel region is shipping out more than 35 percent of the nation's crude oil exports after the Houston area roughly tripled its volumes from 2017 to 2018.Corpus Christi will likely take the lead in exports in coming months as its ship channel to widened and deepened make it easier for it to handle larger export shipping, There is also a race on for deep water export facilities that can handle supertankers.
All of the Texas Gulf Coast accounts for about 80 percent of the nation's crude shipments with the Beaumont and Corpus Christi regions ranking second and third nationwide, according to a new report from Morningstar energy analyst Sandy Fielden.
This Texas dominance won't end anytime soon. Most of the new crude production is coming from West Texas' booming Permian Basin and there's a race to build a bevy of new export terminals along the Texas coast and even offshore of Texas. The proposed offshore terminals are in deeper waters that can more easily handle the world's largest crude vessels.
"The limit to world appetite for U.S. crude is unknown today, but current bets on export infrastructure assume it won't be reached soon," Fielden said.
Nationwide crude exports last year averaged about 2 million barrels of oil a day, up 73 percent from 2017. And, this year, volumes already are averaging more than 2.5 million barrels daily. Crude exports are expected to top 4 million barrels a day in the coming years, according to the International Energy Agency. More than 90 percent of those exports come from Gulf Coast ports in Texas and Louisiana. The remainder mostly is shipped from northern states to Canada.
More than 35 percent of the exports last year came from the Houston Ship Channel region from Houston to Galveston, or more than 700,000 barrels daily last year. That's more than triple the 2017 Houston Ship Channel volumes of about 225,000 barrels a day.
The Houston area is now outpacing the Corpus Christi region - for n0w - in exports. The Corpus area last year exported more than 440,000 barrels a day. But the Beaumont area also surpassed Corpus last year, growing from about 260,000 barrels a day to nearly 460,000 barrels.