Fuel exports will lead booming US energy trade

Significance

Despite coal’s decline, overall US energy exports hit record levels in 2016 after years of strong domestic output growth and major investments in new infrastructure to link US oil and gas fields with international markets. US-produced refined fuel products, crude oil and natural gas liquids are shaking up energy trade routes and posing new challenges to established exporters in the Middle East and Russia.

Impacts

• OPEC oil exporters will have to compete directly with US shale producers for market share in high-growth regions such as Asia.
• Major LNG exporters like Qatar and Australia are likely to see low global gas prices for many years as new US supply hits the market.
• Midstream companies will see strong growth opportunities reshaping US energy infrastructure for exports.
• Washington’s efforts to boost coal in other advanced economies’ energy mixes are unlikely to meet with success.