Jones Act Waiver Drives Surge in U.S. Oil Shipments

The U.S. Energy Information Administration reports that waterborne shipments of crude oil and petroleum products from the Gulf Coast to other U.S. regions surged in April and May after the federal government issued a limited Jones Act waiver. Shipments from the Gulf Coast to the West Coast more than quadrupled from a year earlier, reaching 190,000 barrels per day in April, compared with less than 30,000 barrels per day in January and February.

Shipments to the East Coast also hit a record 1.2 million barrels per day in April, 11% above the previous record. Gasoline blending components and distillate shipments also reached records. Although total waterborne shipments fell 12% in May, crude oil shipments from the Gulf Coast to the East Coast climbed to a record 180,000 barrels per day.

The data show that the Jones Act waiver has significantly expanded the ability to move U.S. petroleum between regions, particularly toward the supply-constrained West Coast and East Coast.