US crude exports rise 14pc to record in 2023

Exports of US crude rose to a record 4.06mn b/d last year on climbing production and a favorable global market for US oil.

Exports were up by 14pc, or 485,000 b/d, over the prior record in 2022, according to US Census Bureau data released Wednesday.

Increasing US exports are largely tied to rising production. The US produced about 12.6mn b/d in 2023, adding about 671,000 b/d of output, according to US Energy Information (EIA) Administration data.

While larger players in the US shale patch focused on returning profits to shareholders and paying down debts, private operators increased production. US producers also benefited from efficiency gains.

US crude production also benefited from offshore output in the Gulf of Mexico, which rose to 1.87mn b/d in January-November, up by 144,000 b/d from a year earlier, according to the latest EIA data.

Developments in the global crude market provided a favorable backdrop for rising US production.

The EU banned imports of Russian seaborne crude in December 2022 in response to Russia's invasion of Ukraine in February that year. Surging oil prices in 2022 resulting from the conflict spurred some production growth in the US as well.

To make up for the shortfall of medium sour Russian Urals, Europe increased its imports of US crude in 2023 by 20pc, or by just over 300,000 b/d, to 1.8mn b/d.

The Netherlands imported 652,000 b/d in 2023, up by 82pc from 2022, making it the largest importer of US crude last year. Spain, Sweden, Ireland and Lithuania also took more US crude last year, while the UK and France cut back.

Opec+ production fell by 820,000 b/d to 41.62mn b/d in 2023. The producer coalition pared its output targets three times in 2023 and once prior to that in October 2022, representing 4.7mn b/d of cuts to its targets.

US exports to Asia-Pacific grew by about 172,000 b/d, or 11pc, to 1.7mn b/d in 2023. China's imports of US crude doubled to 460,000 b/d. Taiwan and South Korea increased their imports as well. India's imports on the other hand halved to about 165,000 b/d as the country increased its intake of discounted Russian crude shunned by the US, European nations and others.

As Opec+ pulled back production of medium to heavy sour crudes and output of US light sweets grew, the latter's increased affordability incentivized refiners to import more WTI and West Texas Light (WTL), causing some refiners in Asia-Pacific and Europe to lighten their crude slates at times last year.

In addition to US light sweets, European and Asian refiners took more medium and heavy sours from the US Gulf coast in 2023 as other supplies became more scarce. US exports of medium-heavy sours rose by 19pc to 29mn bl in 2023, according to data analytics firm Vortexa. China doubled its imports of US medium-heavy sours to 249,000 b/d.

Total US crude exports to the Americas was relatively steady in 2023 at more than 500,000 b/d, according to Census data.

By Calder Jett