South Korea continues to build purchases of U.S. oil. Soon to beat out Canada as #1 U.S. crude client.

[BLA + 1,666]

It was a slow start with SK testing various U.S. light crudes.  A shipment of Eagleford oil was tested and failed to meet SK refiners' specs and was rejected.  The light oil from the western Permian was perfect.  

U.S. oil has moved from 6th place SK supplier to #2.  

U.S. gains have come at the expense of Saudi and Kuwait loses.

South Korea desire to diversify away from dependence on Mideast oil was the start.

U.S. suppliers are getting serious about competing for oil contracts.  They give generous discounts to best competition PLUS transportation credits to negate competitors geographic advantage. 

I believe this is the beginning of REAL COMPETITION in the world crude oil business.  

Even without the coronavirus the next couple of years were going to present an interesting market.  With it  the market raises it to a whole new level. 

The lack of enough U.S.  VLCC export terminals limit the U.S market opportunity. 

U.S. VLCC export terminals will be a game cjanger in 2021/2022.

 

Edited February 25, 2020 by BLA

[0R0 + 6,251]

On 2/24/2020 at 7:25 PM, BLA said:

The lack of enough U.S.  VLCC export terminals limit the U.S market opportunity. 

U.S. VLCC export terminals will be a game cjanger in 2021/2022.

Looking for Mexican Pacific coast as most likely VLCC terminal for Asia. Like LNG trains put out there now.

[Dan Warnick + 6,100]

2 hours ago, 0R0 said:

Looking for Mexican Pacific coast as most likely VLCC terminal for Asia. Like LNG trains put out there now.

Will those VLCCs be wind or electric powered?  Ought to be able to fit 3 or 4 big turbine masts on deck, or throw on 20 or 30 container sized batteries, or both!  Perhaps they could tow a solar array?  Just trying to do my part, with MORE useful suggestions; maybe California could mandate them.  Hmm.

[Dan Warnick + 6,100]

On 2/25/2020 at 7:25 AM, BLA said:

It was a slow start with SK testing various U.S. light crudes.  A shipment of Eagleford oil was tested and failed to meet SK refiners' specs and was rejected.  The light oil from the western Permian was perfect.  

U.S. oil has moved from 6th place SK supplier to #2.  

U.S. gains have come at the expense of Saudi and Kuwait loses.

South Korea desire to diversify away from dependence on Mideast oil was the start.

U.S. suppliers are getting serious about competing for oil contracts.  They give generous discounts to best competition PLUS transportation credits to negate competitors geographic advantage. 

I believe this is the beginning of REAL COMPETITION in the world crude oil business.  

Even without the coronavirus the next couple of years were going to present an interesting market.  With it  the market raises it to a whole new level. 

The lack of enough U.S.  VLCC export terminals limit the U.S market opportunity. 

U.S. VLCC export terminals will be a game cjanger in 2021/2022.

 

More evidence of Trump initiatives, cause and effect.  This news, IMHO, is a direct result of the President's energy policy and his negotiations with South Korea on a host of trade initiatives.