Occidental Petroleum Corp has came forward to be as one of the biggest U.S. shale oil exporters competing with large oil trading and producing firms in a daily oil market of worth $150 million.
Occidental’s growth is not appeared to be slowing down the pace as it is intending to double its crude exports in 2020 to 600,000 barrels per day, said Cynthia Walker, Occidental’s senior vice president of midstream and marketing, in an interview.
The Permian oil field of New Mexico and Texas is the largest oilfield in the United States and in 2017, Occidental remained the largest exporter of the crude produced in that U.S. Gulf Coast area.
And in 2018, Occidental stood among top three exporters of U.S. crude, according to limited customs data on Refinitiv Eikon analyzed by Reuters and exclusive interviews with company executives and employees, as company-level exports data remained kept secret and notoriously guarded by the company and also the U.S. Census Bureau refused to give export data of the company, citing a law which protects such confidentiality.
In the presence of numerous oil producers, shippers and trading houses that are operating in the Permian, Occidental stands high as it exports about 300,000 bpd of oil which makes roughly 10 percent of the total crude exports of the United States.
In Permian, Occidental not only produces significant oil volume of its own, but its marketing division also procures oil from the other Permian shale producers. Moreover, for its pipelines, the company is in long-term shipment contracts and also has access to export and storage terminals.
Between 20 to 25 percent of the every Permian basin barrel have been handled by the Occidental, Walker said.
Occidental’s pipelines has a capacity of about 470,000 bpd to be transported out of the Permian while capacity is expected to be increased in 2019, Chief Executive Vicki Hollub said at an industry conference last year.