Let the Gavel Fall. Sold!
We don’t pretend to be the oracle of the energy world, but you have to admit the first part of the U.S.-China trade agreement looks mighty purty for our oil and gas economy. The nation’s exports to the world’s largest crude importer could increase anywhere from 500,000-700,000 BPD this year and will undoubtedly increase again once those snarky tariffs (5% crude, 25% LNG) have left the building. According to the EIA, these volumes compare with 150,000 BPD the U.S. shipped to China during the first 10 months of last year. China also ranks as the largest importer of LNG, importing 45% of the country’s consumption and making us a formidable competitor with Australia and Qatar for supply. We know, the devil tends to hide in the details, but we’ll happily take that $52.4 billion China has agreed to pony up for American energy over the next two years. Daddy needs a new pair of shoes.