RPT-UPDATE 1-Canadian crude reaches Europe as US shale oil booms

Tue Jan 22, 2013 10:26am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Over 2 mln barrels booked to Europe in rare arbitrage

* India's Essar adds Canadian oil to suitable crudes list

* Competes with West African crude in Europe

By Emma Farge and Julia Payne

GENEVA/LONDON, Jan 22 (Reuters) - The United States now gets so much crude from its own shale deposits that Canadian exporters are selling as far afield as Europe, showing how deeply the U.S. energy revolution is transforming global oil flows.

As recently as 2011, close to 100 percent of Canada's crude exports went to its neighbour the United States, according to the U.S. government's Energy Information Administration (EIA).

But trade and shipping sources said more than 2 million barrels of light crude from Canadian offshore oilfields have gone to Europe in the last month, in a taste of what is to come.

The change is due to technological advances the U.S. expects will bring a 900,000 barrels per day (bpd) record jump in its oil output to 7.3 million bpd in 2013, the EIA said ealier this month, from places like the Bakken shale deposit in North Dakota that now feeds U.S. East Coast refineries served by Canada.   Continued...