October was a big month for Texas oil as more than 70% of the crude oil in the Port of Corpus Christi was exported. This large increase in exports is only expected to grow as other countries seek more of Texas’ crude oil.
For almost 40 years, the U.S. did not allow oil exports until December 2015 when Congress lifted this ban. After this ban was lifted, the Port of Corus Christi saw exports quickly leaving their port in high numbers, with a record of 1.8 million barrels a day in October. With help from the Eagle Ford Shale and Permian Basin, the port is only expected to see these numbers rise.
The markets for Texas crude oil is heading overseas which is bringing in more opportunity for the oil and gas industry as well as investors. The Fraser Institute just released its annual Global Petroleum Survey that stated Texas is once again the most attractive jurisdiction in the world for oil and gas investment. The state’s stable environment and solid policies attract foreign investors even when commodity prices are down.
As crude oil steadily leaves the Port of Corpus Christi, two major projects are underway that will benefit exports in the next several years. A new bridge over the port’s entrance is currently being constructed which will allow taller vessels to enter. This $809 million dollar project is estimated to be completed by 2021. In addition, the Port of Corpus Christi signed an agreement for a $327 million dollar dredging project. This will deepen and widen the ship channel which will let larger crude carriers inside the port. Both of these projects allow large crude carriers to enter the port empty and leave full which wasn’t possible previously. This will cut back on time and costs.
Texas’ crude oil is on a steady incline and with the help of the Port of Corpus Christi, exports are expected to only boost the markets at home as well as abroad. The lifted export ban has fueled the oil and gas industry and has investors from all over the world looking to Texas.