13 March 2012 01:22 [Source: ICIS news]
SAN DIEGO (ICIS)--The US will continue to grow as a net exporter of oil products as a result of increased supplies, mostly from tight oil plays, and lower domestic demand, a consultant said on Monday.
US oil demand has dropped nearly 2m bbl/day since 2005, and 2011 demand dropped by 150,000 bbl/day from 2010, said Alan Gelder, the head of oils research for consulting firm Wood Mackenzie.
Gelder made his presentation at the annual meeting of the American Fuels and Petrochemical Manufacturers (AFPM) in San Diego, California. The conference ends on Tuesday.
He said their outlook is based on the development of US tight oil supplies, the strong competitive position of Gulf Coast refining and a supportive global environment.
“Supply of oil products grew significantly in both 2010 and 2011, due to the benefits of a growing supply of tight oil in the US, which was priced at a significant discount to international markets,” Gelder said. “The Brent-WTI differential blew out during 2011 due to a number of factors, but the lack of southbound pipeline infrastructure from Cushing to the US Gulf Coast refineries was significant.”
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