Mel Larson - KBC
Prior to the end of 2015, the US maintained a ban on exporting free trade of domestically produced crude. With NAFTA there was limited US crude exporting largely to Canada. With the ban now lifted, the crude no longer is stranded into the Americas, and free trade now presents a new and familiar situation in the market. The dynamics are not only of crude export but in the changes in world demand of refined products and the politics that are substantially impacted from the oil exporting countries and the reliance upon those revenues.
The drop in crude pricing has had a major impact on countries financial position and the ability to invest in E&P and thus break even on revenues. Latin America has been particularly hit hard while at the same time dealing with corruption that impedes the investments for country growth. The US has and is enjoying an outlet of the refined products into markets where the demand cannot be met from internal production. In the next 5 yrs, the US refining companies will be looking to balance the domestic demand and markets along with the complexity of the issues with environmental and regulatory adjustments. KBC will provide an overview of the shifts and adjustments that are anticipated for the next 3- 5 years. The overview will consider crude oil type and dynamics, market demands for USA and LATAM, including the impacts with MARPOL low sulfur bunker fuels.