Light sweet imports to Gulf Coast near eliminated

According to the US Energy Information Administration (EIA), the increase in US shale and tight crude oil production has resulted in a decrease of crude oil imports to the US Gulf Coast area, particularly for light sweet and light sour crude oils.

Historically, Gulf Coast refineries have imported as much as 1.3 million bpd of light sweet crude oil, more than any other region of the country. Beginning in 2010, improvements to the crude distribution system and sustained increases in production in the region (in the Permian and Eagle Ford basins) have significantly reduced light crude imports. Since September 2012, imports of light sweet crude oil to the Gulf Coast have regularly been less than 200 000 bpd. Similarly, Gulf Coast imports of light crude with high sulphur content (described as light sour) have declined and have been less than 200 000 bpd since July 2013.

EIA’s crude oil import tool can be used to examine crude oil imports by country of origin. In the Gulf Coast (defined as the Petroleum Administration for Defence District 3, or PADD 3), crude oil is imported from several countries, mainly in the Americas (Mexico, Venezuela, Colombia and Canada) and in the Middle East (Saudi Arabia, Kuwait, and Iraq). Imports from other countries to PADD 3 have declined significantly in recent years, from an average of 1.7 million bpd in 2009 to just 0.26 million bpd in 2014, through October. Imports from Africa in particular have declined, as those were primarily light sweet in quality.

Because the Midwest region (PADD 2) is landlocked, imports show a much less diverse range of countries of origin. In 2014, almost all imports of crude oil to the Midwest came from Canada. Comparing Canadian imports to the Midwest, which now surpass 2 million bpd, imports from other countries had been historically low (125 000 bpd in 2009) and are now even lower (34 000 bpd in 2014 through October).

Adapted from a press release by Emma McAleavey.

Read the article online at: https://www.hydrocarbonengineering.com/refining/10022015/gulf-coast-imports-220/