U.S. exports of petroleum products set a new record in 2022

In 2022, the United States exported 5.97 million barrels per day (b/d) of petroleum products, an increase of 7% (or 405,000 b/d) compared with 2021, setting a new record for total petroleum product exports. In volumetric terms, the largest increase was in exports of distillate fuel oil—usually consumed as diesel—which increased by 18% (193,000 b/d) compared with 2021. Exports of motor gasoline increased by 6% (52,000 b/d), while jet fuel exports (which make up a relatively small share of the total) increased by 67% (72,000 b/d). Although export volumes of propane remained the largest petroleum product export at 1.38 million b/d, compared with 2021, volumes only increased by 4% (50,000 b/d). Other growth in exports came from other hydrocarbon gas liquids (HGLs) (3% or 32,000 b/d), residual fuel oil (10% or 10,000 b/d), and petroleum coke (11% or 54,000 b/d), while other exports decreased by 10% (59,000 b/d) (Figure 1).

Substantial geopolitical disruptions in 2022 have affected and will likely continue to affect the flow of global trade in crude oil and petroleum products. In March 2022, the United States announced an import ban on petroleum from Russia, while many U.S. allies, particularly in Europe, took similar action to reduce imports of Russia’s crude oil and petroleum products. As a result, prices and crack spreads for petroleum products increased sharply in the second quarter, encouraging refiners globally to increase production. In the EU, petroleum from Russia accounts for a large share of all energy imports, but the body banned maritime imports of crude oil from Russia starting in December 2022 and imports of petroleum products starting in February 2023. The changing trade patterns associated with Russia’s exporters seeking buyers further abroad while Europeans look to more geographically distant producers for new sources of supply also contribute to rising freight prices, because ships must spend more time to travel longer distances.

Aside from the EU ban on Russia’s crude oil and petroleum imports, the high volume of U.S. petroleum product exports in 2022 also reflects longer-term trends. Since 2010, U.S. exports of total petroleum products (excluding crude oil) have increased from 2.31 million b/d to 5.97 million b/d, an increase of 3.66 million b/d, or 159%. Rising U.S. propane exports in particular reflect increasing field production, a result of associated HGL production from U.S. onshore natural gas and crude oil wells. In 2010, the United States exported 109,000 b/d of propane, compared with almost 1.4 million b/d in 2022 (Figure 2). Other HGLs, particularly ethane and normal butane, also account for significant U.S. export volumes. To export the additional HGL production, exporters have had to invest in additional transportation and export infrastructure, and as a result, exports have grown with processing capacity over the past decade. Unlike other U.S. exports of petroleum products, exports of propane and other HGLs are primarily directed to destinations in the Asia Pacific region, accounting for 729,000 b/d, more than half of total U.S. propane exports. Japan was the largest recipient of U.S. propane exports in 2022 at 384,000 b/d. The next largest recipients were Mexico, followed by China, and then South Korea.

Growth in U.S. exports of other refined products has generally been slower than that of HGLs, reflecting production volumes that have been limited by U.S. refinery capacity. Unlike U.S. upstream production, U.S. refinery capacity expanded more gradually throughout the last 10 years but faced capacity closures in 2020 and 2021, resulting in little net change in refinery capacity since 2010. Growth in U.S. refined product exports instead reflects increasing production from existing refineries through improved refinery efficiency in producing higher yields of distillate fuel oil.

Reaching 1.26 million b/d, U.S. distillate fuel oil exports increased more than any other single product in 2022, yet the amount of distillate the United States exported last year remains less than before the pandemic, as 2019 exports averaged 1.31 million b/d (Figure 3). European sanctions on imports from Russia contributed most strongly to rising prices and crack spreads on distillate fuel oil, and distillate pricing benchmarks regularly climbed above the five-year (2018–2022) average throughout the year. Distillate inventories at the Amsterdam, Rotterdam, Antwerp (ARA) trading hub in Europe and the Singapore hub were near or below the five-year low throughout the year, as were inventories in the United States. Global low inventories of distillate encouraged U.S. refiners to maximize distillate production to expand exports and meet domestic supply. Supply disruptions in Europe were further complicated by lower refined product exports out of China for much of the year. Even though U.S. distillate exports to Europe noticeably increased, the bulk of U.S. distillate fuel oil exports were actually destined for Latin America, which has generally received more distillate fuel oil from the United States compared with Europe since 2012. High maritime freight prices also likely made Latin American destinations more attractive to U.S. exports than transatlantic buyers. Mexico was the largest single recipient of U.S. distillate fuel oil at 293,000 b/d, followed by Brazil and Chile. Overall, Central and South America was the largest regional recipient of U.S. distillate at 829,000 b/d.

U.S. exports of motor gasoline also increased in 2022, and unlike distillate exports, exceeded 2019 levels, coming in at their highest annual average level on record. Exports of total motor gasoline (including both finished gasoline and blending components) in 2022 were 954,000 b/d on average, an increase of 52,000 b/d over 2021, exceeding the previous high of 940,000 b/d in 2018 (Figure 4). Mexico has historically been the largest recipient of U.S. gasoline exports and remained so in 2022 at 507,000 b/d. Unlike distillate, destinations for U.S. gasoline exports are generally less diverse, and exports to Mexico alone exceeded exports to all of Central and South America, the next largest destination region at 376,000 b/d.

Propane, HGLs, distillate fuel oil, and motor gasoline account for the largest share of total U.S. petroleum product exports. Other major products include kerosene-type jet fuel, residual fuel oil, and petroleum coke, which also generally increased in 2022 compared with 2021. Increasing jet fuel exports reflect the gradual growth in air travel globally since the impact of the COVID-19 pandemic in 2020; air travel has been slower to return to pre-pandemic levels than other sectors.

For questions about This Week in Petroleum, contact the Petroleum and Liquid Fuels Markets Team at 202-586-5840.