Oil & Gas Import Export: A Closer Look
Oil and natural gas are fossil fuels, formed from decayed prehistoric organisms, that have been underground for millions of years. These energy resources are invaluable to society, powering homes, fueling transportation, and providing raw materials to produce everyday items.
Oil is found in liquid form while natural gas is found in gaseous form. Oil can be used to generate electricity and creates useful byproducts such as gasoline, diesel fuel and petrochemicals. Natural gas is used for cooking, heating homes and businesses as well as providing electric power if configured properly. Additionally natural gas may also fuel vehicles as it produces fewer emissions than oil or other fossil fuels when burned. Overall, both oil and natural gas provide high-value energy resources that can help meet a country's current needs without compromising future generations’ ability to enjoy their benefits.
Import Export of Crude Oil and Gas
The import/export of crude oil and petroleum products is an important indicator of the overall health of a nation’s economy. Oil and Gas export import data offers insight into the international flow of goods within one month period. For example, in April 2020 over 20,000 barrels of crude oil were imported while very few barrels were exported. On the other hand, Liquefied Petroleum Gas (LPG) was heavily exported with over 14,000 barrels being transported over the same period. The month also saw no import or export activity for Automobile Fuel Oil (MS) and Aviation Turbine Fuel (ATF).
Looking at the total annual figures from January to March 2021 shows that most imports and exports increased across sectors compared to previous years. Notably, there was an 11% increase in Naphtha exports during this period and a significant jump in imports for LPG which were more than triple what was seen in 2020. Such revelations show how global commodities influence energy prices as well as provide insight on current trends in both international business and geopolitics.
U.S. poised to become net exporter of crude oil
The United States is currently the world’s leading player in the crude oil industry, with a record 3.4 million barrels of oil exported daily and 3 million barrels of petroleum products such as gasoline and diesel fuel. This all may change in less than a year however, as the US is set to become a net exporter of crude oil for the first time since World War II. The surge in exports comes at an opportune time considering the price pressure that global supply has felt due to burgeoning demand from fracking operations.
This shift will have a major effect on US energy policy going forward and could create jobs previously unimagined down the line. It also provides options for foreign companies looking to substitute out-priced Russian and Saudi crude for cheaper American varieties which may support our geopolitical interests abroad without pushing us further into conflict. Looking ahead, events like these are why analysts have dubbed 2020 “The Year of American Energy Exports” indicating that we are poised to be an even more terminal force in global geopolitics moving forward.
The global oil and gas import and export market is a complex and dynamic one, but it is also a vital part of the global economy. By understanding the key trends and insights shaping the market, businesses can make informed decisions that benefit all stakeholders.