Drudge Retort: The Other Side of the News
Thursday, February 08, 2018

The United Arab Emirates, a model Persian Gulf petro-state where endless billions from crude exports feed a giant sovereign wealth fund, isn't the most obvious customer for Texan oil. Yet, in a trade that illustrates how the rise of the American shale industry is upending energy markets across the globe, the U.A.E. bought oil directly from the U.S. in December, according to data from the federal government. The end of a ban on U.S. exports in 2015 coupled with the explosive growth of shale production, has changed the flow of petroleum around the world. Shipments from U.S. ports have increased from a little more than 100,000 barrels a day in 2013 to 1.53 million in November, traveling as far as China and the U.K.

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With rising crude exports and already booming overseas sales of refined petroleum products such as gasoline, the U.S. net oil imports have plunged to below 3 million barrels a day, the lowest since data available starting 45 years ago, compared with more than 12 million barrels a day in 2006. The U.S. could become a net petroleum exporter by 2029, the EIA said this week.

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This is a really big deal in the oil markets and is something that really concerns OPEC, which is why they drove prices down so low to try to cripple Shale Oil and fracking exploration in the US.

Now that the UAE has bought Texas extra light condensate, other refiners in the ME will no doubt follow suit.

#1 | Posted by Rightocenter at 2018-02-07 08:43 PM | Reply

Drill baby drill.

#2 | Posted by sawdust at 2018-02-07 08:59 PM | Reply

"Until last year, the U.A.E. relied on Qatar for its condensate supply. But the two countries are embroiled in a political dispute, and the U.A.E. decided in June to ban all petroleum ships from Qatar."

It is less about the US being an oil powerhouse to supply the rest of the world and more about a dispute between UAE and Qatar. When that is resolved they will go back to buying from Qatar.

The US still imports 10 million barrels per day.

#3 | Posted by 726 at 2018-02-08 07:13 AM | Reply | Newsworthy 1

"This is a really big deal"

HARDYHAR

To Whom?

let us know when this is used to pays off the debt instead of just lining a few pockets

#4 | Posted by ChiefTutMoses at 2018-02-08 09:30 AM | Reply

"Drill baby drill."

Updated: "Frack baby frack, who cares about the water supply. We'll drink oil."

#5 | Posted by danni at 2018-02-08 09:40 AM | Reply

But I thought all this domestic production was going to decrease energy costs here in the US by decreasing imports while increasing supply...

#6 | Posted by jpw at 2018-02-08 10:47 AM | Reply | Newsworthy 1

#6 That's like when they told you the GOP Tax Scam was going to create jobs here, now they are using the tax cuts to pay for job cuts.

#7 | Posted by 726 at 2018-02-08 11:53 AM | Reply | Newsworthy 1

#3

The UAE Qatar dispute factors in but until this sale there was an unwritten rule between OPEC members not to buy Texas extra light condensate. Those days are now over, and even when the Qatar mess is over, other refineries will start buying TELC since even with shipment costs it is better and cheaper than anything the ME can produce. As for imports, you must have missed this:

"the U.S. net oil imports have plunged to below 3 million barrels a day".

#6

All this domestic production is why oil dropped to $27.67/bbl in 2016 from a high of $125/bbl in 2012, so the answer is yes. This is also why the price has stabilized at around $60/bbl., which is still half of its peak.

Crude oil prices ended 2017 at $60/barrel (b), the highest end-of-year price since 2013. West Texas Intermediate (WTI) crude oil prices averaged $51/b in 2017, up $7/b from the 2016 average, and ended the year $6/b higher than at the end of 2016. Brent prices have moved up $10/b since the end of 2016 and ended the year at $65/b, widening the Brent-WTI spread to $5/b at the end of the year, the largest difference since 2013.

Despite relatively high U.S. crude oil production, curtailments in production by members of the Organization of the Petroleum Exporting Countries (OPEC) and robust global demand supported crude oil price increases in 2017. The OPEC agreement to curtail crude oil production in 2017 and subsequent extension of that agreement through 2018 tightened crude oil supplies, which put upward pressure on crude oil prices.

The price spread between Brent and WTI was significantly greater in 2017 than in 2016. Lower domestic crude oil prices made U.S. crude oil more competitive in international markets and supported record U.S. crude oil exports. Domestic demand was also higher: U.S. product supplied for crude oil and petroleum products was the highest level since 2007.

Crude oil prices increased in 2017, and Brent-WTI spread widened

#7

Deflection noted, also, you need to learn a little more about how restructuring works.

#8 | Posted by Rightocenter at 2018-02-08 12:41 PM | Reply

When the price per barrel of dumb ideas and dumb thoughts reaches $100 a barrel, I want drilling rights to wrongofcenter's and fishpaw's heads!

#9 | Posted by aborted_monson at 2018-02-08 12:59 PM | Reply

what rightoecentre is saying is that every American will see a windfall of cheap energy, one day.

all they have to do is "Just Wait" and "Mark His Words". you know, cause it's a BOMBSHELL!

#10 | Posted by ChiefTutMoses at 2018-02-08 12:59 PM | Reply

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what rightoecentre is saying is that every American will see a windfall of cheap energy, one day.

Cococheif, you already got that windfall in 2015 when gas prices dropped over $1 per gallon, you and Unfortunatelynotaborted Don were just too stupid to realize it.

In 2012, prices reached the highest level in the eighty-year series in both current and constant dollars, but began a steep decline thereafter. In constant dollar terms, the price of gasoline in 2015 was only seven cents higher than in 1929.
March 7, 2016 Average Historical Annual Gasoline Pump Price, 1929-2015

To put it in simple words that you both might understand, in 2015 gas prices went from the highest they ever were to near 1929 levels.

#11 | Posted by Rightocenter at 2018-02-08 01:26 PM | Reply

I'm glad, however, that you both have united in the "ROC Lives in my Encephalitic Head" Club.

Your weekly meetings must be a hilarious and never ending litany of inane word salad.

#12 | Posted by Rightocenter at 2018-02-08 01:30 PM | Reply

1929 levels are meaningless. It sounds good because ooohhhhh that's a long time ago.

But where are today's prices relative to historical lows, not just the highs.

#13 | Posted by jpw at 2018-02-08 01:44 PM | Reply

As expected the 1929 line is misleading BS.

In 2015 dollars gas is still higher than the vast majority of the past 80 years or so.

#14 | Posted by jpw at 2018-02-08 01:49 PM | Reply

#13-14

I didn't figure you to be in the "searching for bad news" cabal, now I know.

You need to compare US oil production to the price chart, every time US oil production spiked (1970, 1985, 2017) prices fell. When US production fell off, prices rose. From 1989-1998 prices stayed pretty low since Russian production started to take off, but with the advent of OPEC+ and cooperation between OPEC and Russia in the early 2004, culminating in the OPEC/Russia supply agreement in 2016, prices skyrocketed. The reason to compare it to 1929 or 1950 is that is when the US was the major source of US oil and we weren't in the Depression or WWII. After the early 1950s, oil imports started to rise dramatically.

I suggest you Google price elasticity of supply if you want more information on how this works.

#15 | Posted by Rightocenter at 2018-02-08 02:13 PM | Reply

Link fell out:

US Field Production of Crude Oil

#16 | Posted by Rightocenter at 2018-02-08 02:14 PM | Reply

"As expected the 1929 line is misleading BS"

everything this tool posts is misleading and disingenuous.

#17 | Posted by ChiefTutMoses at 2018-02-08 02:19 PM | Reply

#17

This might help you and Don, Coco.

And let us all know when you finally understand my #11, the timer is still ticking...

#18 | Posted by Rightocenter at 2018-02-08 02:35 PM | Reply

I'm not "searching for bad news".

I just lack selective memory when it comes to corporate nonsense.

They rake in the profits, while our lands get destroyed, geological activity is potentially altered and prices barely budge in return.

#19 | Posted by jpw at 2018-02-08 02:40 PM | Reply

I just lack selective memory when it comes to corporate nonsense.

Every link I provided is from the EIA or Energy.gov, sorry you don't like the facts they present.

They rake in the profits, while our lands get destroyed, geological activity is potentially altered and prices barely budge in return.

There's an "easy" solution to that, stop using fossil fuels in your everyday life, see how that works out for you.

#20 | Posted by Rightocenter at 2018-02-08 02:59 PM | Reply | Newsworthy 1

#20 I'm not questioning the data. I'm saying it's being selectively utilized to fit a narrative.

As for the last line your committing a logical fallacy, can you tell me which one?

#21 | Posted by jpw at 2018-02-08 03:37 PM | Reply

You first, I answered yours with another, which is what it deserved.

#22 | Posted by Rightocenter at 2018-02-08 04:14 PM | Reply

I didn't post a logical fallacy. I'm pointing out that the decreased regs and increased drilling is disproportionately benefiting the oil corps while not fulfilling the promised made.

#23 | Posted by jpw at 2018-02-08 05:15 PM | Reply

Promises made.

Damn phone.

#24 | Posted by jpw at 2018-02-08 05:27 PM | Reply

Then neither did I, I was pointing out that without fossil fuels you wouldn't be able to live life as you are accustomed regardless of what promises that you felt had been made to you.

#25 | Posted by Rightocenter at 2018-02-08 05:30 PM | Reply

So you're going with the "I know you are but what am I" approach? Really?

One can live in the modern world with modern amenities while still pushing for decreased consumption and better consideration of factors other than profit and jobs.

And I don't feel that those promises were made. They were, with increased drilling and repeal of regulations being sold under the guise of energy dependency and decreased consumer costs. That is reality whether you like it or not.

#26 | Posted by jpw at 2018-02-08 05:49 PM | Reply

They were, with increased drilling and repeal of regulations being sold under the guise of energy dependency and decreased consumer costs. That is reality whether you like it or not.

#26 | POSTED BY JPW AT 2018-02-08 05:49 PM

And the reality, whether you like it or not, is that the increased drilling and lower regulations have resulted in lower prices since 2013 and a decrease of imported oil, from 12M bbl./day in 2006 to 3M bbl./day in 2017, with the US set to become a net exporter by 2029.

#27 | Posted by Rightocenter at 2018-02-08 06:10 PM | Reply

"with the US set to become a net exporter by 2029."

2029?
Flap!

#28 | Posted by snoofy at 2018-02-08 06:37 PM | Reply

have resulted in lower prices since 2013

www.gasbuddy.com

But prices have been on a steady upward trend despite increased domestic production.

Why? Because of course they're going to sell it globally where they can make the most money. They're not going to tank the market here by over producing and keeping it domestic at low low prices.

So it gets exported to more lucrative markets.

Which is precisely what you'd expect to happen and seems to be happening.

#29 | Posted by jpw at 2018-02-08 11:22 PM | Reply

We don't need to rape our arctic and natural monuments to fill some Saudi's gas tank.

#30 | Posted by BruceBanner at 2018-02-09 09:59 AM | Reply

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