US could become world’s largest exporter of crude oil in 2023

The US could become a net exporter of crude oil, amidst sanctions against Russia’s exports of oil and natural gas following its invasion of Ukraine, with the Washington’s massive release of oil from emergency reserves to combat surging gas prices.

Sales of US crude to other countries have reached a record 3.4 million barrels per day (bpd), including some 3 million bpd of refined products, such as gasoline and diesel fuel.

The US is also the leading exporter of liquefied natural gas (LNG), and increased sales are predicted for the next few years.

However, the US consumes 20 million barrels of crude a day, the highest amount globally, while its output has never exceeded 13 million bpd.

To become a net exporter of crude, it needs to boost production or reduce consumption, but as local petroleum demand is expected to rise 0.7 percent to 20.51 million bpd next year, production must increase.

Government data released in November showed net US crude oil imports fell to 1.1 million bpd, the lowest since records began in 2001 and down sharply from five years ago, when more than 7 million bpd were imported.

The US already produces more oil than any other country, including Saudi Arabia and Russia.

According to data analytics firm Kpler, to offset losses of Russian oil, European refiners have snapped up US grades, and as more discounts to global benchmarks were offered, Asian refiners increased their purchases to 1.75 million bpd.

Export terminal operators are also increasing their capacity to service giant tankers, which can carry more than 2 million barrels of oil.

Sean Strawbridge, chief executive of the Port of Corpus Christi, the largest US oil export facility, said, “Russia has proven to be an unreliable supplier. That really creates a wonderful opportunity for American producers and American energy,” as quoted by Reuters.

In the first half of 2022, the US surpassed Qatar and Australia to also become the world’s largest exporter of liquefied natural gas, due to demand from Europe and surging prices.