Fresh U.S. energy data underscore strengthening global balances in oil & gas
May 28, 2024
Key Observations:
Fresh data from the U.S. Energy Department today sharpen the bullish case for oil and gas.
U.S. petroleum exports averaged 10.669 million b/d in the first third of 2024. That flow marks an increase of +6% YoY and +18% vs the same period in 2022. From 1Q2022 to 1Q2024, the value of the U.S. trade surplus across all energy commodities more than doubled, accounting for 22% of the shaving in the total U.S. merchandise trade deficit over that two-year interval.
As U.S. oil and gas exports boom, domestic demand for oil refinery inputs is also rising: 17.891 million b/d ytd at April 30, +85 thousand b/d YoY. Separately, U.S. biofuel production averaged 1.32 million b/d ytd at April 30, +78 thousand YoY.
Consumption of renewable biodiesel, which is directly substitutable for oil-derived diesel, rose by +59 thousand b/d YoY in 2024’s first two months. This competition was a depressant on ULSD prices this spring, but that effect is now waning.
Non-fuel use of oil liquids is strengthening. Activity to date now points to 3.74 million b/d of U.S. demand for these purposes in 2024. At this pace, U.S. non-fuel oil demand will surpass 5 million b/d in 2034. Non-fuel use of gas is also rising smartly.
At end of April 2024, there were 62,514 locations in the United States with electric vehicle charging ports available to the general public (+12.2% YoY).
Source: EIA, U.S. Commerce Department, Blacklight Research.
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