Canadian Oil Exports from US Gulf

What was the Mighty Mouse cartoon again … oh yeah “Here we come to save the day!” }};-D


February 11, 2022 2:19 AM AST

Canadian oil barrels head out of the U.S. Gulf in record numbers

By Stephanie Kelly and Nia Williams

Canadian oil companies exported a record amount of crude out of the U.S. Gulf Coast at the end of 2021, a trend that should continue in coming months, as tight international oil markets are in need of the nation’s heavy, sour crude.

These barrels are hitting the Gulf thanks to new pipeline connections and expansions that just came online last year, and are meeting surging global demand that has pushed oil prices to seven-year highs. Major producers, including the Organization of the Petroleum Exporting Countries and allies including Russia, are struggling to raise output, along with traditional providers of heavy crude like Venezuela and Mexico.

By contrast, Canada’s oil sands production is at a record 3.5 million barrels a day. Most of that is exported to use in the United States, but a growing number of barrels are transiting the country to the U.S. Gulf Coast, where it is then re-exported.

In 2021, Canadian exports from the U.S. Gulf Coast averaged more than 180,000 bpd, reaching nearly 300,000 bpd in December, a record, according to Matt Smith, Kpler’s lead oil analyst for the Americas. That’s up from roughly 70,000 bpd in 2019 and 2020. The accelerated pace is expected to continue in 2022.

Confession: I own significant to me positions in two of the positions mentioned in the article.

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