Summary
- The closure of the Strait of Hormuz pushed US energy export volumes to a record high.
- Asian and European imports of US crude and LNG increased, but the surge was viewed as a temporary wartime effect.
- Limits in refinery infrastructure, the burden of greater reliance on the US, and shipping facility constraints make it difficult to view the trend as a long-term growth driver.
Forecast Trend Report by Period
US energy exports climbed to a record after the Strait of Hormuz was closed during the war between Israel and Iran. Buyers in Asia and Europe turned to American supplies after Middle Eastern energy shipments were disrupted. Still, energy experts say the spike is a wartime windfall rather than a sustainable long-term growth driver.
The Wall Street Journal reported on April 24 that buyers in Asia and Europe, cut off from Middle Eastern energy routes, are increasing purchases of US crude oil and liquefied natural gas.
Data from the US Energy Information Administration showed exports of US crude and petroleum products averaged a record 12.9 million barrels a day last week.
Shipping data provider Kpler also found that exports of US crude and LNG bound for Asia last month and this month rose about 30% from a year earlier.
The Journal said the trend nearly turned the US into a net crude exporter this month for the first time since 2001.
The surge in exports followed the closure of the Strait of Hormuz. Asian countries, long heavily dependent on Middle Eastern energy, have had little choice but to turn to US supplies to make up for shortages.
Energy experts, however, cautioned against too much optimism. Most refineries in Asia were built to process Middle Eastern crude, and running lighter US crude lowers efficiency. Retrofitting those facilities would also require heavy investment.
Farul Bakshi, a researcher at the Oxford Institute for Energy Studies, said a full overhaul of Asian refining facilities could take months in the design stage alone and years before reaching full operations.
Europe is also uneasy about increasing its reliance on the US. Henning Gloystein, energy lead at Eurasia Group, said there are concerns the Trump administration could use energy dependence as leverage in negotiations over climate policy, NATO and tariffs.
Supply constraints are another hurdle. Loading facilities at major export hubs in Texas and Louisiana are nearing physical limits, making it difficult to quickly expand shipments.
Tsuneo Watanabe, a researcher at the Sasakawa Peace Foundation in Japan, said US crude and gas would lose their appeal once the Strait of Hormuz reopens and Middle Eastern energy prices normalize.
Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
