Energy Tomorrow Blog
API MSR: U.S. Petroleum Demand and Imports Higher, Supply Languished
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Dean Foreman
Posted October 15, 2021
API’s new Monthly Statistical Report (MSR), based on U.S. petroleum primary market data through September, reinforced a combination of developments that has been recurrent so far in 2021 – that is, demand outpaced supply, inventories fell and, consequently, imports and prices rose.
Historically, this combination of factors has also led to further market tightening, which could put additional upward pressure on costs and prices.
The underlying drivers come back to the basics of demand, which reached a record high for the month of September at 20.6 million barrels per day (mb/d), and supply that has remained muted due to the industry’s continued financial, work force and supply chain constraints, coupled with a lack of policy support as we discussed here.
Divergent Times for U.S. Oil and Natural Gas Demand, Supply
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Dean Foreman
Posted September 22, 2021
Economics and energy market data for the third quarter of 2021 were marked by divergences. That’s the main thrust of API’s quarterly Industry Outlook for Q3 2021 and Monthly Statistical Report (MSR) with primary data for August.
Demand for oil and natural gas has risen strongly along with the economic recovery, as we discussed here. At the same time, global oil and natural gas investments have fallen to record lows so far in 2021, (see here). Consequently, supplies have failed to keep pace with demand and generally resulted in lower inventories, higher U.S. imports and the strongest prices for crude oil, gasoline and natural gas since 2014.
End the Federal Leasing Pause – Unleash American Energy
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Lem Smith
Posted June 21, 2021
Last week, the U.S. District Court for the Western District of Louisiana issued a preliminary injunction blocking President Biden’s policy pausing new natural gas and oil leases on federal lands and waters. The decision identified major limits on the federal government’s ability to restrict energy access and concluded that the Department of the Interior must resume lease sales, both onshore and offshore.
On behalf of U.S. natural gas and oil operators, API urges the administration to move quickly to comply with the court order and end the federal leasing pause.
Progress or Retreat
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Mike Sommers
Posted January 28, 2021
Remarks at the United States Energy Association’s 17th annual State of the Energy Industry Forum:
A month into 2021, a divided America faces more challenges than anytime in modern history. But after a year of crisis, everyone can agree on something – we are ready for recovery.
So, we at API were encouraged to hear President Biden’s Inauguration Day call for unity. Even better, he issued that call at a time when Democrats and Republicans alike can rally around U.S. energy leadership. After all, the new president assumes power when America leads the world both in energy production and environmental performance. ...
Poised to build on this energy progress, API congratulated President Biden. Moments after he took the Oath of Office, we pledged to work with his administration when we can and oppose when we must. So, only eight days into his term, it is disappointing to report that we find ourselves in a posture of strong opposition. But we have no choice.
President Biden’s energy policy actions have completely undercut his message of unity and his mandate for economic recovery. Today I’m going to illustrate why.
Despite Challenges of 2020, U.S. Boosts its Energy Security
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Dean Foreman
Posted December 11, 2020
Despite the 2020 COVID-19 recession, the U.S. has reached milestones for energy security and trade, including its lowest imports of crude oil and reliance on OPEC in nearly three decades.
Achieving the milestones this year has enabled the U.S. to be on track to become a net exporter of petroleum and total energy on an annual basis for the first time in more than 60 years. At the same time, U.S. refiners have increasingly leveraged domestically-produced energy, ultimately benefiting households through lower spending on energy.
In short, record productivity has enabled abundant domestic oil and natural gas supplies, amped-up U.S. energy exports and displaced foreign energy imports to the benefit of American consumers. This is the backdrop for the imminent change of U.S. administration, as well as a heightened focus on U.S. energy security – see here and here – even though petroleum products and natural gas have remained abundant and at historically low prices.
Why Import Oil? Saudi Cargoes Help U.S. Refiners
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Mark Green
Posted May 5, 2020
News reports of a “flotilla” of oil tankers from Saudi Arabia, sailing to the U.S. with more than 40 million barrels of crude oil in their holds for delivery this month, has many Americans questioning why the U.S. – the world’s largest oil and natural gas producer – imports any oil when oversupply associated with the government response to COVID-19 has a number of U.S. operators hurting financially.
Some think President Trump should send the oil fleet home or impose import tariffs. It’s a new chapter in an old debate over why the U.S. imports oil when our domestic production is among the globe’s leaders. In the case of this imported Saudi oil, the answer has much to do with the supply needs of the U.S. refining system.
USMCA Advances America’s Energy Security
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Sam Winstel
Posted December 19, 2019
Last week, House Democrats and the Trump administration announced a bipartisan deal on the U.S.-Mexico-Canada Agreement (USMCA), concluding the year-long debate and setting the stage for congressional approval. Today, it heads to the House floor, bringing the agreement one step closer to reality.
From an energy perspective, the case for finalizing USMCA is strong, and as we’ve said, its approval is essential to economic progress and energy security. Because North America’s energy markets are interdependent and multi-directional, integration will result in more affordable energy for consumers in all three countries.
U.S. Leaders Should Empower U.S. Energy Leadership
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Mark Green
Posted November 22, 2019
Our newest video reminds everyone how much the United States has gained from the energy revolution – record-breaking, world-leading production of natural gas and oil – with clips of presidents from both political parties over the years, urgently calling for lower oil imports. They knew America’s national security was tied to increasing the nation’s energy security. …
Presidents since Jimmy Carter in the late 1970s recognized that ever-increasing oil imports meant increasing dependency on others for energy. … That changed with the energy revolution. …
The question, as we’ve posed in recent posts (see here and here), is why anyone would erase these gains by banning hydraulic fracturing, as some candidates for president have advocated. Why would America reject its own natural gas and oil abundance and go back to an era of energy scarcity?
On U.S. Energy Security, Low Energy Prices
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Dean Foreman
Posted October 17, 2019
A major milestone for U.S. energy trade appears imminent. For the first time in more than 60 years, the U.S. may be a net exporter of total energy – based on API’s estimates in our latest Monthly Statistical Report (MSR).
The MSR shows that the U.S. petroleum trade balance decreased to net imports of just 818,000 barrels per day in September – and that at a time when domestic demand was at its highest level ever. With the U.S. Energy Information Administration (EIA) estimating that U.S. net exports of natural gas last month were 5.5 billion cubic feet per day (bcf/d) – more than 900,000 barrels per day in oil-equivalent energy – that would exceed U.S net imports of crude oil and refined products.
Oil Exports, Lower Net Imports, Greater Energy Security
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Mark Green
Posted October 4, 2019
The latest figures on U.S. crude oil exports show growing U.S. energy leadership, while the continued decline in net oil imports signals strengthened American energy security – with both stemming from the revolution in U.S. production. Charts from the U.S. Energy Information Administration (EIA) help illustrate.
First, EIA reports that U.S. crude oil exports rose to average 2.9 million barrels per day (b/d) in the first half of this year – an increase of 966,000 b/d over the same period in 2018. U.S. crude oil exports set a record in June of 3.2 million b/d, and EIA's graph vividly reflects the sea change in the United States’ oil exporting posture.