Everything’s Bigger in Texas

Earlier this week the EIA stated that oil terminals on the Texas Gulf Coast exported more crude oil than they imported in April of this year; surpassing imports by 15,000 bpd.  A month later, the spread between imports and exports in Texas widened to 470,000 bpd which contributed to the U.S.’ record setting crude oil export total of 2 million bpd.  The Texas gulf coast had previously been credited with approximately half of the United States’ crude oil exports until this upsurge, bringing the area’s contribution up to 70% in May of 2018.

Much of this increase comes from both Eagle Ford in South Texas and the Permian Basin in West Texas where many recent investments and acquisitions between companies in the area has everyone fighting to get some traction in the region.  This shows “a clear shift in the US shale industry towards consolidation as players seek operational and capital efficiencies,” wrote analysts at research firm Rystad Energy in a recent report.  But this demand comes with concern.  Export capabilities are still constrained on the Gulf Coast as ports are unable to load larger crude oil vessels at present; however, two companies are recommending the construction of offshore export terminals to accommodate large tankers.  Additionally, there is a lack of available pipelines hindering the ability to move oil out in a timely manner.  While more pipelines are inevitable, the area will likely see export constraints through the middle of 2019.

Given the recent growth in the Texas Gulf Coast, the state is pacing to be the third largest producer of crude oil, behind Russia and Saudi Arabia respectively, surpassing OPEC members Iraq and Iran in the process.  If predictions hold true, the state is on track to produce 6.5 million bpd in the next seven to ten years.









Written by:

As Director of Marketing for Guttman Holdings, I lead our advertising, digital marketing, branding, and public relations strategies, and share my expertise to communicate key messaging to all our stakeholders. With my diversified leadership background, I also drive innovation and cutting-edge business practice and results, to generate interest in Guttman Energy, Guttman Renewables, and Source One service offerings.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED “AS IS,” WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.