Amid a thunderstorm of horrifically sad COVID-19 news, I wanted to focus on an energy story to lift your spirits. We all realize that energy markets are such an afterthought right now, but I wanted to give you something. Remember Red, hope is a good thing, maybe the best of things, and no good thing ever dies.
So, here goes. We are slated to become the largest oil and the largest liquefied natural gas (LNG) exporter in just a few years. The federal numbers are out, and U.S. oil and natural gas exports boomed once again last year to record heights. In fact, last year the “U.S. Posts First Month in 70 Years as a Net Petroleum Exporter.” For context, our oil demand remains very high but flat (19-20 million b/d), while our gas demand has been rising fast, up 33% since 2008 to ~86 Bcf/d in 2019. With Mexico taking the bulk, U.S. oil product exports have been steadily mounting, rising an annual 150 million barrels over the past decade.