Propane, distillate carry petroleum exports in first half of 2019

Increased exports of propane and distillate offset decreased exports of all other petroleum products in the first half of 2019, according to the U.S. Energy Information Administration (EIA).

In the first half of 2019, the United States exported an average of 5.47 million barrels per day (bpd) of petroleum products, an increase of 19,000 bpd (0.3 percent) from the first half of 2018 and the slowest year-over-year growth rate for any half year in 13 years. Two factors that likely contributed to lower exports were lower U.S. refinery runs in the first half of 2019 compared with the first half of 2018 and slowing global economic growth, which is limiting demand for petroleum products, EIA says.

Distillate remained the largest U.S. petroleum product export in the first half of 2019, averaging 1.3 million bpd, an increase of 60,000 bpd (5 percent) compared with the first half of 2018, EIA reports. Distillate has many uses, including transportation, manufacturing, agriculture, and residential, and commercial activities. Mexico was the largest destination for U.S. distillate exports during the first half of 2019, receiving 290,000 bpd, or 22 percent of total U.S. distillate exports.

Propane was the second-largest U.S. petroleum product export in the first half of 2019, at 1.03 million bpd, an increase of 142,000 bpd (16 percent) from the first half of 2018. Propane is used as a space heating and transportation fuel and as a petrochemical feedstock. Most U.S. exports of propane are destined for use as a petrochemical feedstock, mainly at facilities in Asia and Europe.

EIA forecasts that continued growth in petroleum product exports, albeit slower than in previous years, combined with increasing U.S. crude oil exports, will result in the United States becoming a total petroleum net exporter.