US crude oil exports reached a new record in 2024

Crude oil production in the US Lower 48 (L48) states, which does not include Alaska or offshore production, reached a record in November 2024, allowing for a greater supply of crude oil to export. Increased production efficiency counteracted a decrease in the number of active oil rigs, resulting in L48 production increasing 3% last year. Unlike in the L48 states, production in Alaska and offshore in the Gulf of America decreased last year because of natural declines in both areas and because of disruptions to crude oil production resulting from above-average hurricane activity in 2024 in the Gulf.

Europe and the Asia and Oceania region remained the top regional destinations for US crude oil exports. US crude oil exports to Europe have grown significantly in recent years, particularly after Europe banned seaborne crude oil imports from Russia in late 2022. The volume of US crude oil exports to Europe also increased following S&P Global’s 2023 decision to include West Texas Intermediate (WTI) crude oil in European crude oil benchmark Dated Brent.

For a second consecutive year, the Netherlands, home to a large crude oil storage and trading hub in Rotterdam, received more US crude oil exports than any other country in 2024, averaging 825 000 bpd (32% growth from 2023). Overall, crude oil exports to Europe increased by 6% to 1.93 million bpd in 2024, with decreases in exports to Spain, France, and Italy outweighed by increases to Germany, the UK, and the Netherlands.

Despite China receiving the second-most US crude oil in 2023, exports to China dropped by 53% in 2024 to 217 000 bpd. A net decline in transportation fuel demand in China, which led to a decrease in overall Chinese demand for imported crude oil, and increased crude oil imports from Malaysia and Russia decreased Chinese demand for US crude oil. US exports to Asia overall decreased by 131 000 bpd to 1.58 million bpd as increased exports to South Korea, Singapore, and India were offset by the decrease in exports to China.

US crude oil exports to India increased 32% in 2024, bouncing back from relative lows in 2023. In 2023, India increased imports of relatively cheap crude oil from Russia, following sanctions that limited the price Russia could charge for crude oil exported using the shipping and insurance services of sanctioning countries. India’s oil consumption growth overtook China’s in 2024, increasing Indian demand for imported crude oil. However, despite this rising demand, Indian imports of crude oil from Russia fell in 2024 as the price discount on oil from Russia narrowed. With the decrease in Russian imports, US crude oil helped fill in the gap, resulting in a nearly 55 000 bpd increase in US crude oil exports to India in 2024.

 

 

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