US Oil-Product Export Booms + CN's Deepwater Drilling Languid

choi

(1) Ben Lefebvre, US Refiner Exports Hits High. Wall Street Journal, Oct 9, 2013.
http://online.wsj.com/news/artic ... 23604287854862.html

Quote:

"While federal law bars overseas shipments of most US-produced oil, refiners can export petroleum products created from that crude, including gasoline, diesel and jet fuel. In July, US refiners shipped a record 3.8 million barrels of products a day * * * according to the latest monthly data from the Energy Information Administration.

"That's in part because drivers in the US are buying less gasoline, largely thanks to more energy-efficient automobiles and even though the price of gasoline has fallen over the past year to about $3.35 a gallon, according to AAA, down from $3.82 a year ago.

"Exports to Asia have grown by a third this year, with greater demand coming not just from Japan—a traditional buyer of US fuel—but also from China and India

"Overseas customers are particularly eager for low-sulfur diesel that meets the stringent air-quality standards that are rolling out across South and Central America and are already law in Europe.

"European refiners * * * have been struggling with high crude costs, outdated equipment and economic malaise at home. US fuel exports to Europe doubled between 2007 and 2012 as at least 15 inefficient refineries on the continent closed. * * * American refiners continue to steal their European counterparts' market shares, not just in the Mediterranean and Africa but also in the big cities on the US East Coast.

choi

(2) Wayne Ma, China Pushes to Increase Oil Output. Wall Street Journal, Oct 9, 2013.
http://online.barrons.com/articl ... 23143562816578.html
("Since 2005, only nine offshore blocks have been selected [by foreign oil explorers] through Cnooc's annual tender for development in China, according to a Wall Street Journal analysis. * * * the exploration results of blocks offered via tender have generally been disappointing")

Note:
(a) In print but not online is a graphic showing change in oil (or crude) production from 2003-2013 (inclusive), under the heading: Fuel Gauge; Year-over-year change in China's oil output.
(b) "State-run Cnooc Ltd. said in a statement posted to its website on Tuesday that it would offer 25 offshore blocks to foreign companies this year, 15 of which have a depth of at least 450 meters—the threshold for deep water."
(i) Press release: Global Perspectives Deep & Ultra-deepwater Technology & Projects Report 2008-12. Infield, March 2008
http://www.infield.com/Deep-and_ ... ies_and_Markets.htm
("Indeed, the growth and development of deepwater (defined as water depths of between 500 and 1,499 metres) and ultra-deepwater (defined as water depths of 1,500 metres and more) activity is, and is expected to remain, a key element of the continued expansion of the offshore oil and gas industry")
(ii) Press release: Interior Issues Directive to Guide Safe, Six-Month Moratorium on Deepwater Drilling. US Department of Interior, May 30, 2010
http://www.doi.gov/news/pressrel ... pwater-Drilling.cfm
For the purposes of the Moratorium NTL [short for Moratorium Notice to Lessees and Operators, because US owns the Exclusive Economic Zone in Gulf of Mexico], 'deepwater' means depths greater than 500 feet [150 meters]")
(iii) Chapter 2: Challenges of Deepwater Drilling, in Energy and Climate Change - Second Report; UK deepwater drilling - implications of the Gulf of Mexico oil spill. UK House of Commons, December 2010
http://www.publications.parliame ... 450/45005.hDecember 2010tm
("Deepwater drilling depths are sometimes defined as greater than around 400m, while water depths of greater than 1500m are defined as 'ultra-deepwater'")