While cryptocurrencies have been dominating financial headlines of late, energy expert Matt Badiali points another sector which has been quietly booming for the past couple of years. The U.S. oil sector has become one of the top “under the radar” stories that almost no one has been talking about.
Matt Badiali points out that the U.S. oil sector is exporting nearly five times the amount of oil than the previous decade. That amounts to over five million barrels a day. So what is responsible for the boom? Mr. Badiali has a one-word response: Shale.
The shale boom has made the United States a powerhouse oil exporter this decade. With shale booms in places like the Permian Basin in Texas, the oil can be easily refined, placed on a ship and sent overseas.
In particular, Matt Badiali points out that U.S. oil exports have surged in the past year from about 4 million barrels per day in 2016 to over 5.5 million per day in 2017. Also, a factor in the U.S. oil export boom is the surging demand from the top U.S. importers – Canada and Mexico.
From January to August of 2017, Mexico imported 237 million barrels of oil while Canada imported 127 million barrels. The list of top U.S. oil importers also includes Brazil, Japan, China, the Netherlands, Singapore and India who combined imported over 300 million barrels of oil in the same 8 month time period.
Mario Badiali points out that the VanEck Vectors Oil Refiners ETF is up over 38% year to date. The energy expert also noted individual refiners such as Marathon Petroleum Corp. and Valero Energy Corp. who have seen stock gains of 17% and 16% this year, respectively.
Matt Badiali is a senior editor and contributor at Banyan Hill Publishing. As a trained geologist and experienced investor, Mr. Badiali has combined his two skills to provide expert insight into the energy sector. Matt has a Bachelors of Science Degree in Earth Sciences from Penn State University as well as a Masters Degree in Geology from Florida Atlantic University.
Mr. Badiali’s writings appear regularly in Medium as well as various social media platforms such as Twitter, Facebook, Tumblr, Google+ and Youtube.