Though the U.S. became a net exporter of fuel in 2011, according to Census bureau export data, the value of petroleum and coal exports more than doubled from $51.5bn in June 2010 to $110.2bn in June 2013. Some estimates say that it is the first time in two decades when analysts see rising exports and slower imports.
Whereas oil and gas exports recorded a 68.3 per cent increase, primary metals and livestock exports recorded an average 32.7 per cent for all commodities. Estimates say that the value of U.S. fuel exports have grown faster than other goods and commodities and according to experts it will be a driving force behind the U.S. president’s goal to double exports by 2015.
Earlier in 2010, Mr. Obama had called for a doubling of exports within five years so that the national economy is brought on track. His statement to double the exports by 2015 was an ambitious effort to reboot the U.S. industrial base; however, for many experts, it is still elusive as according to them, though exports have increased, a lot of it is fuel.
Whereas in 2010, the U.S. was producing monthly exports worth $143bn, goods exports accounting for $99bn, this year by the month of June, monthly U.S. exports overall went up $191bn. There has been an attractive increase in goods exports at $134bn, rising about one-third which is comparatively better but not the best.
Experts claim that thanks to the Obama administration, some steps towards boosting energy exports that include approving the new facilities for the export of liquefied natural gas are playing a vital role in the oil boom.
Will We See a Merger and Acquisition in the Oil Sector?
As the profits of most of the oil companies have expanded thanks to record pumping of oil, one might assume that the largest oil companies may buy some smaller companies. It is highly likely that moved by the recent oil book may help the oil companies like ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP), etc. may go for some mergers and acquisitions.
Analysts have diverse opinions on whether big oil companies like ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP) should go for M&A as according to them to remain competitive most of these companies have to reinvent. They admit that these companies should buy a company every year in order to keep the oil flowing.
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