Asian Oil Importers Turn to US Companies for Their Energy Needs

Oil Tanker on Sunset

If you have been considering a new aboveground storage tank fabrication, now may be a good time to reach a decision while analysts expect Asian demand for U.S. crude oil to increase in the near future.

An all-time high production in the country’s shale fields has driven prices to an attractive rate, which may prompt buyers from Asia to import more oil.

Record Production

Some industry executives believe that U.S. energy exports will hit 2.3 million barrels per day (bpd) in June, with 1.3 million bpd set aside for Asia. In mid-May, crude oil exports even reached 2.6 million bpd based on data from the U.S. Energy Information Administration (EIA).

In the next two months or so, Asian importers will likely acquire more oil due to the lower rates. Some U.S. energy companies have discounted their rates by more than $9 per barrel, which prompted refineries in Asia to steer away from importing crude from Russia and the Middle East.

Top Producer

If the current rate of production in the U.S. continues, the country may even become the world’s biggest crude oil producer within a few months. Scott Sheffield, Pioneer Natural Resources chairperson, said that production might exceed 11 million bpd by September or October.

The country’s current output ranks as the second largest at 10.3 million bpd behind Russia’s 10.6 million bpd, according to the EIA. In the next seven or eight years, Sheffield expects the U.S. to pump 15 million bpd of crude oil. It may not be surprising if Asia continues to import oil until then.

Conclusion

Storage tanks serve a critical role in maintaining a seamless flow of logistics in the energy export industry. Even if you have no plans of building a new facility, it’s important to make sure that your existing fleet remains in tip-top shape to accommodate an increase in overseas demand.