Posts tagged “crude exports”
US Administration OKs Exports without Requiring Congressional Approval
I see that the US Commerce Department has given two US companies permission to export condensate that would otherwise be trapped here under a 1970s-vintage ban on US oil exports. This validates the view, as described in a white paper from the office of Senator Lisa Murkowski (R-AK) earlier this year, that the administration has the statutory authority necessary to allow such exports.
After decades of investment to process the increasingly heavy and sour crude oil types available for import, most US refineries, particularly on the Gulf and west coasts, are no longer equipped to run large volumes of the extremely light condensates and oils now coming from onshore shale deposits. Allowing producers to achieve world-market prices for their output should boost the economy and raise tax receipts, yet is unlikely to harm consumers.
Condensate Exports Won’t Reduce US Gasoline Production
Condensates are a class of hydrocarbons distinct from crude oil, but they share enough oil-like characteristics frequently to be lumped in with the latter, as in US export regulations. The technical definition of condensates encompasses both the “natural gasoline” extracted during the processing of natural gas produced from oil fields (“associated gas”,) as well as the heaviest liquids separated from “non-associated” gas, i.e. from gas fields, rather than oil fields. CONTINUE»