A SLEEPING GIANT: America’s export machine cranks up.. “Shipments of oil and gas hit new highs in 2016. As drilling picks up and new infrastructure is built, 2017 could be another record breaker.”

The bigger change, however, was that US oil was able to find its way to markets around the world, reflecting broad demand for the light sweet crude coming out of US shale oilfields. Before the lifting of the ban, nearly all exported US crude went to Canada, which held a valuable exemption from the long-standing restrictions. In 2016, US oil found its way to 26 different countries, though Canada remained the biggest buyer, pulling in nearly 60% of exports. The Netherlands, which funnels crude throughout Europe, was the second largest buyer at 38,200 b/d.

Italy and the UK were also sizable importers. Curaçao, where Venezuela’s PdV blends its own heavy oil with US light oil for re-export or to feed its refinery on the island, was the third-largest buyer.

Early 2017 figures point to rising crude exports as production picks up and new infrastructure is built as oil fills the gaps left by Opec’s cuts. Exports for the first quarter were 0.775m b/d, compared with 415,000 b/d over the same period in 2016. Rising output from the Permian is helping push crude exports to new highs. Most of the Permian’s 2m b/d-plus in output is linked via pipeline to the Gulf Coast, which is saturated with light tight oil. Domestic supplies have already backed out virtually all imports of other light grades in the Gulf Coast, leaving the new Permian barrels little space except for the export market.

Have you hugged a fracker today?