U.S. Ruling Loosens Four-Decade Ban On Oil Exports
Source: The Wall Street Journal
The Obama administration has quietly cleared the way for the first exports of unrefined American oil in four decades, allowing energy companies to chip away at the long-standing ban on selling U.S. crude overseas.
Federal officials have told two energy companies that they can legally export a kind of ultra-light oil that has become plentiful as drillers tap shale formations across the U.S. With relatively minimal processing, oil shipments could begin as early as August, according to one industry executive involved in the matter.
Using a process known as a private ruling, the U.S. Commerce Dept.'s Bureau of Industry and Security is allowing Pioneer Natural Resources Co. of Irving, Texas, and Enterprise Products Partners LP of Houston to export ultra-light oil known as condensate to foreign buyers who could turn it into gasoline, jet fuel and diesel.
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Under current rules, companies can export refined fuel, such as gasoline and diesel, but not oil itself. The Administration's new approach, which hasn't been publicly announced, redefines some ultra-light oil as fuel after it has been minimally processed, making it eligible for sale abroad.
Read more: http://online.wsj.com/news/article_email/u-s-ruling-would-allow-first-shipments-of-unrefined-oil-overseas-1403644494-lMyQjAxMTA0MDIwNDEyNDQyWj
Historic NY
(37,449 posts)as they already make claims they can't refine enough product.
Omaha Steve
(99,494 posts)I don't think we would export any energy, especially dirty energy.
Benton D Struckcheon
(2,347 posts)The real story here: the US doesn't have the refineries to handle this oil. It's too light.
From Reuters (How a US decision to allow oil exports could change the worlds energy balance):
GeorgeGist
(25,311 posts)But there's money to made so let's do it and forget the consequences.
They_Live
(3,224 posts)this is the boot crushing our face forever.