Gasoline Demand Update -- RBN Energy -- July 5, 2016; Active Rigs In ND Back Up To 31

I've only read a little bit of today's RBN Energy post today, but it looks like another great analysis. My hunch is that it may be the best "energy" post to read today and there's going to be a lot posted today. The title of today's RBN Energy update: petroleum product exports riding high. Archived.

The upswing in U.S. gasoline demand is nothing new.

RBN blogged about it this time last year and covered issues related to delivering gasoline, diesel and jet fuel to Northeast markets a few weeks back.

In the Energy Information Administration’s (EIA) June 2016 Short-Term Energy Outlook, gasoline consumption this summer was projected to average 9.5 MMb/d, a solid 1.9% higher than the summer of 2015, which was a strong demand season itself. 

What really stands out, though, is that even with high domestic demand for gasoline, net U.S. export volumes remain impressive. [Data is presented] showing the huge shift of the U.S. from a net importer of about 1.5 MMb/d in 2006 to a net exporter of about 1.2 MMb/d over the past six months. The graph on the right in Figure 1 focuses on the 2012-16 timeframe and splits net exports into gasoline (green line) and distillates (brown line). Both gasoline and distillate exports are still trending higher, but the big news is gasoline, which has moved well into the net export category since late 2015.

I'm not going to look for it now, but a few weeks ago I opined whether the refinery strikes in France might drive US gasoline exports. In addition, gasoline demand is outpacing domestic gasoline production on the west coast of South America.

The "coolest" thing in that article: the Panama Canal was not mentioned. The expansion of the Panama Canal can only add to overall exports, all else being equal. Even if gasoline and distillates are not transported in the new larger tankers, just the fact that the canal has been widened will increase the pace of all exports.

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Back To The Bakken

Active rigs back up to 31:

	7/5/2016	07/05/2015	07/05/2014	07/05/2013	07/05/2012
Active Rigs	31	76	191	188	215