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www.fueloilnews.com | FUEL OIL NEWS | NOVEMBER 2016 11 EIA: PROPANE DROVE GROWTH IN EXPORTS IN FIRST HALF OF 2016 In the first half of 2016, the United States exported 4.7 mil- lion barrels per day (b/d) of petroleum products—almost 10 times the crude oil export volume—an increase of 500,000 b/d over the first half of 2015. While U.S. exports of distillate and gasoline increased by 50,000 b/d and nearly 140,000 b/d, respectively, propane exports increased by more than 230,000 b/d, the Energy Information Administration reported. Propane is now the second-largest U.S. petroleum product export, surpassing motor gasoline, the EIA reported. While total U.S. petroleum prod- uct exports grew, export destinations remained largely unchanged. Mexico, Canada and the Netherlands received the greatest volumes of U.S. petroleum prod- ucts in the first half of 2016, importing 775,000 b/d, 579,000 b/d, and 271,000 b/d, respectively. Exports to these nations were, respectively, 129,000 b/d, 67,000 b/d, and 66,000 b/d above their level in first half of 2015. Distillate exports, the largest component of U.S. petroleum product exports for many years, averaged 1.2 million b/d in the first half 2016, an increase of 50,000 b/d from the first half 2015. Central and South America accounted for the largest share of U.S. distillate exports, averaging over 620,000 b/d in the first half of 2016, up more than 30,000 b/d from the first half of 2015. Chile remained the region's largest importer of U.S. distillate in the first half 2016, averaging over 106,000 b/d. The largest single destination over- all for U.S. distillate exports was Mexico, which averaged 147,000 b/d in the first half of 2016, an increase of 3,000 b/d over the first half of 2015. Despite a well-supplied distillate market in Asia, U.S. exports to Singapore increased to 15,000 b/d in the first half of 2016, up from 11,500 b/d in the first half of 2015. U.S. propane exports increased from 562,000 b/d in the first half of 2015 to 793,000 b/d in the first half 2016. Exports to Asia and Oceania accounted for 94% of this growth. 3). Japan imported the most U.S. propane at 159,000 b/d in the first half of 2016, an increase of 111,000 b/d from 48,000 b/d in the first half 2015. Exports to Panama, however, fell from 41,000 b/d in the first half 2015 to 7,000 b/d in the first half 2016. The large increases in exports to Japan and decreases in exports to Panama could be a result of reduced activity, following narrower price differentials between the U.S. and Asia. Some of the propane exports from the United States that undergo ship-to-ship transfers will cite the location of the transfer and not the final destination of the propane. This often results in larger-than-actual export numbers for the countries where the ship-to-ship transfers take place and in less-than-actual numbers for some final destinations. For example, export data involving ship-to-ship transfers may show Panama as the destination of a propane export cargo eventually destined for Japan or other countries in Asia. Figure 1. Total U.S. petroleum product exports (1H 2016 vs 1H 2015) million barrels per day 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 other distillate propane gasoline 0.6 0.6 1.1 1.9 0.7 0.7 1.2 2.0 1H 2015 1H 2016 Figure 2. Change in total U.S. distillate exports (1H 2016 vs 1H 2015) thousand barrels per day 60 50 40 30 20 10 0 -10 50 32 14 10 3 -2 -2 -5 Total distillate exports Central and South America Asia and Oceania North America Africa Eastern Europe and Russia Middle East Western Europe Source: U.S. Energy Information Administration, Petroleum Supply Monthly Source: U.S. Energy Information Administration, Petroleum Supply Monthly