Issue 131 – Gasoline Exports On The Rise
Introduction…The increasing gasoline exports have been supporting, in part, the recent oil price increase. And that increase is expected to continue throughout the remainder of 2018.
Gasoline exports…”[Gasoline exports have] been, really, I think, one of the most important fundamentals of the refining industry over the last five, six years,” Marathon Petroleum Corporation CEO, Gary Heminger told “Mad Money” host Jim Cramer in an interview. “We exported 314,000 barrels per day in the fourth quarter. Exported. That’s about 17 percent of what we make. So that is very important, to be able to hit the foreign markets.”
“We’re expecting 2018, globally, to be up about 1.5 million barrels per day,” the CEO said. “That’s going to require more and more exports from the U.S. And the U.S. Gulf Coast refineries, they’re the best engines in the world.”
In summary…Since much of the U.S. refineries are in the Gulf Coast, these increased gasoline exports are expected to drive additional infrastructure development which may benefit from President Trump’s push for deregulation.
Source: Jim Cramer, “With gasoline exports on the rise, refinery CEO sees global demand going higher in 2018,” CNBC, 1 Feb 2018