Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
Related: About this forumObama Administration Widens Export Potential for U.S. Oil
The U.S. Commerce Department opened the door to more U.S. oil exports as long as the crude is lightly processed, tempering the impact of a law thats banned most overseas petroleum shipments for the past four decades.
The department widened its definition of whats traditionally been considered a refined product eligible for shipping to customers abroad. That means more of the oil being pumped from U.S. shale formations may be eligible for export after being run through small-scale processing units.
The Commerce Department issued its ruling after Pioneer Natural Resources Co. petitioned for approval to export a type of ultra-light oil that had been stripped of lighter gases to make it less volatile for transport -- a minimal level of processing known as stabilization. The ultra-light oil, known as condensate, has been abundant in shale formations during the drilling boom, leading to oversupplies on the Gulf Coast.
Its a crack in the door which has otherwise been shut for 40 years, Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London, said by phone. If approvals for condensate exports are extended to more companies, itll benefit U.S. producers and processors in Asia, particularly in Singapore and South Korea.
http://www.bloomberg.com/news/2014-06-25/obama-administration-widens-export-potential-for-u-s-oil.html
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
3 replies, 950 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (0)
ReplyReply to this post
3 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Obama Administration Widens Export Potential for U.S. Oil (Original Post)
IronLionZion
Jun 2014
OP
rocktivity
(44,577 posts)1. Export? Why can't we keep it here?
In fact, why can't we own it?
rocktivity
exboyfil
(17,865 posts)2. So how close are we to being oil independent?
Bring our carrier fleets and our soldiers home. Even if it costs more to obtain, it is more than made up by less defense spending.
IronLionZion
(45,514 posts)3. Yeah, I'm not sure what's the deal with this.
The US both imports and exports oil to Canada for some reason.
Not sure why they don't refine it and use it closer to the source instead of shipping it elsewhere. Refinery technology has to have improved somewhat over the years, right? I doubt its too expensive to expand refinery capacity here. Are Asian refineries willing to pay more than Americans for our oil?
Economic Forces
There are certainly a lot of inexorable economic forces that suggest the U.S. is going to relax the export ban in the long term, Ric Spooner, a chief strategist at CMC Markets in Sydney, said by phone.
Further applications for exports from the U.S. may follow this approval, Morgan Stanley analysts led by Adam Longson wrote in a report today. If more overseas sales are allowed, U.S. condensate could find its way to Asia, from which companies can produce naphtha used in the petrochemical industry, BNPs Tchilinguirian said.
A lot of condensate splitting capacity is in Asia and more will be added this year, he said. Some of the Asian processors would have been wondering where the condensate is going to come from.
There are certainly a lot of inexorable economic forces that suggest the U.S. is going to relax the export ban in the long term, Ric Spooner, a chief strategist at CMC Markets in Sydney, said by phone.
Further applications for exports from the U.S. may follow this approval, Morgan Stanley analysts led by Adam Longson wrote in a report today. If more overseas sales are allowed, U.S. condensate could find its way to Asia, from which companies can produce naphtha used in the petrochemical industry, BNPs Tchilinguirian said.
A lot of condensate splitting capacity is in Asia and more will be added this year, he said. Some of the Asian processors would have been wondering where the condensate is going to come from.