Boom-times for US refiners as output increases by 49%

Over the past five years, US crude oil production has increased by more than the entire output of Nigeria

Escalating production of “tight” (mainly shale) crudes has raised US oil output by 2.5 million barrels a day (b/d), or 49%, since its low-point of 2008 – but exports of crude are heavily restricted by federal law. Consequently the new production is being pushed through US refineries, and the products exported. The refinery business is booming and capacity is being expanded. The story gets better, because rising US oil production has depressed the prices of key US crudes, while prices for internationally-traded crudes, most often based on the Brent price, have remained resolutely high. Benefiting from less-costly crude – and also from less-costly gas, for refinery fuel – the US refiners have