US BEATS NIGERIA & OTHERS IN CRUDE SUPPLY TO UK

US BEATS NIGERIA & OTHERS IN CRUDE SUPPLY TO UK

The United States’ crude oil export to the United Kingdom, for the first time since such shipments began in 2015, beat down the oil volume supplied by other countries including Nigeria.

The Financial Times reported on Wednesday that the US supplied close to 25% of every four barrels of crude processed by UK oil refineries, or 264,000 barrels per day, illuminating the prominent roles American oil now plays in the Britain’s energy mix.

Data provided by the cargo-tracking company Kpler showed that the US crude export volume outweighed Norway, Russia, Nigeria or Algeria, which have all been major suppliers to the UK in recent years. The UK North Sea operators now face a serious battle to stem production declines.

Although monthly export volumes can be volatile, the rising volume in US crude supply to the UK can be associated to a trend since Washington lifted widespread restrictions on exports in 2015.

While the US played a second fiddle to Norway in 2018, the average crude oil volume it exported to UK doubled to 160,000 bpd same year and up from less than 20,000 bpd in 2016.

“We’re likely to see more US exports to the UK,” said Prof. Paul Stevens, an energy expert and fellow at Chatham House.

“It’s geography – why sail further than you need to when the UK is the first big market the US can reach?” he added.

Punch