The U.S. shale boom has proved immensely successful as America continues to grow in the oil and gas market. However, as the trade war between China and the United States heats up, many are worried about whether or not the disputes will affect crude oil, especially oil exported from the United States.
Here are the 5 fast facts you need to know:
- This Year Alone, China Imported 20% of American Crude Oil
China imported a total of 1.76 million barrels per day of crude oil through June. In fact, U.S. crude exports to China had risen to 15 million barrels in June, which was the highest volume since 1996. In addition to importing a record-breaking amount of U.S. crude oil this year, China also bought 2.4 billion cubic feet per day of the 2.77 billion cubic feet per day of liquefied natural gas exported by the US.
- America is Seeking to Force Iranian Oil Importers to End Purchases Completely
In June of this year, the U.S. said it would impose sanctions against all importers of Iranian oil by November. This was seen by some as a tough stance, and the trump administration has since softened, choosing to work with countries on a case-by-case basis. However, despite the leniency offered, the U.S. is still seeking to eventually end purchases of imported Iranian oil.
- Although China Threatened to Impose Tariffs on U.S. Crude Goods, the Asian Country Ultimately Decided to Only Include Fuels on Their Tariff List
In response to the $50 billion in U.S. tariffs on Chinese imports (delivered June of this year), China had threatened to impose tariffs on the import of U.S. crude oil. This news shook the oil markets as China has been a principal recipient of American oil. Two months after the initial threat, though, China removed U.S. crude from its tariff list of goods.
- Despite the Growing Tension Between China and the U.S., the U.S. Export Business Is Growing Rapidly
According to analysts, oil exports could grow by 1 million barrels a day annually over the next five years. And, liquified natural gas exports could more than double by 2020.
- The U.S. is Gaining Momentum Despite Spats with China
In the next five years, the U.S. is expected to grow substantially into an energy exporting powerhouse. The country is estimated to rival oil exports from Saudi Arabia and become one of the world’s largest exporters of gas. And, these projections hold up regardless of the tension between the U.S. and China.
So, what does this new information mean for you?
With the revolution of shale oil production and its massive increase in domestic production, now is the perfect time to invest in U.S. oil and gas! Investing in U.S. oil is quickly gaining popularity as more people are paying attention to the amazing growth in the U.S. oil export business.
Contact Cannon Operating to learn more about the endless benefits of investing in current opportunities.