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00:00:01
>> It's only been one year since the four decade American ban on oil exports was lifted, and the biggest US delivery to China is soon to be on its way. Sources told Reuters, Friday more than 2 million barrels of US crude will be loaded onto ships operated by Chinese state owned companies, PetroChina and Unipec, before the month is out.
00:00:22
The sale comes at an advantageous time for the growing US shale industry, says Reuters energy markets reporter Catherine Ngai.>> We have not historically sent a lot of oil to China. It's very difficult to get there. As you can imagine, shipping it costs a lot of money. Bringing it that far, and the movement of how the markets work have sort of a line.
00:00:44
And in terms of being able to do the math and making profit in Asia, which is sort of one of the fastest growing economies. It's one the biggest consumers of oil, especially China, kind of Asia's largest consumer of oil.>> With the sale, oil boom causing a glut in U.S. supplies and pushing prices lower compared to other global sources.
00:01:04
American exporters can now ship that cheaper oil further away and still make a profit. And that competitive price spread is expected to get even more favorable if OPEC nations go ahead with a planned output cut making their oil even more expensive to global customers.>> Saudi Arabia wants to keep market share in Asia.
00:01:24
And this is happening at the same time that the US is sending lots and lots of oil to Asia. So, it kinda creates an interesting tension that is having Asia with lots of barrels.>> A few years ago, who would've ever thought that the US would be competing with Saudi Arabi to sell oil.
00:01:41
But today, the upcoming shipments to China underscoring Americas new role as a small but growing player in global energy production.