American refiners are relying more heavily than ever on domestic shale oil, consuming the lightest blend of crude on record, Bloomberg writes.
With supplies of heavier crude from Mexico declining and Venezuelan imports restricted, fuelmakers are increasingly turning to shale basins in Texas, New Mexico and North Dakota. At the same time, a global surplus of light, sweet oil from the U.S., Guyana and the North Sea has narrowed the price gap between light and heavy grades. That makes high-quality shale oil more cost-effective for refiners like Valero, ExxonMobil and Marathon.
The shift also offers supply chain advantages, as domestic shale can be delivered via pipeline in days instead of waiting weeks for imports. Last year, 61% of oil used in U.S. refining was domestic, a share expected to grow if shale remains economically favorable.
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