The chairman of the U.S. Energy Information Administration Adam Siminski says that the growing production of the sulfur-free light oil in the United States would push Washington to move towards the export of oil. He added that America can first export oil to Mexico and other nearby countries in which there is a growing demand for energy.
Recent data of the Energy Information Administration shows that the average U.S. oil production amounted to more than seven million barrels per day last December which is the highest seasonal level since 1992. The administration expectations indicate that the U.S. oil production will grow by about 900 thousand barrels per day this year to reach an average of 7.3 million barrels per day.
During an energy conference held in Houston in the U.S.A, Sieminski pointed out that the U.S. production of the sulfur-free light oil is growing rapidly in a way which makes it seriously consider the possibility of exporting the surplus. It is worth mentioning that the American oil exports are generally prohibited, although some shipments are allowed to be sent to Canada which is – like Mexico – a member of the North America Free Trade Agreement (NAFTA).
The United States is still a major importer of crude oil, but a lot of its major oil refineries, including those on the Gulf of Mexico coast, have been converted to refine heavy crude with high sulfur content. Those refineries are cheaper in international markets and this raises the possibility of light crude surpluses in the coming years.