• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 hour We're freezing! Isn't it great? The carbon tax must be working!
  • 9 mins US (provocations and tech containment) and Chinese ( restraint and long game) strategies in hegemony conflict
  • 2 mins Historian Slams Greta. I Don't See Her in Beijing or Delhi.
  • 7 hours Shale Oil Fiasco
  • 21 hours Might be Time for NG Producers to Find New Career
  • 4 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 8 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 14 hours Beijing Must Face Reality That Taiwan is Independent
  • 19 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 1 day Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Getting Around the US Crude Export Ban

Those who seek to get around the ban on most US crude exports that has been in place for four decades are reportedly eyeing the potential to export petroleum byproducts, or condensates, instead.

According to the Wall Street Journal, some 1 million barrels of the 8 million barrels of oil produced in the US every day are condensates, and while the rules ban exports of condensates that come directly out of the ground in liquid form, they don’t necessarily ban condensates that are stripped from natural gas at processing plants.

Today, we are seeing significantly more of these particular condensates flowing because of the boom in shale extraction from major plays like Bakken, Eagle Ford and Utica, among others. And the rational is that because this condensate plays only a very minor role in producing gasoline or diesel fuel, its export would not have much impact on consumer prices—as some fear lifting the crude export ban would.

Sandy Fielden, an analyst with RBN Energy consulting, told the WSJ that there is now more condensate than chemical plants and refineries can process, so there’s no reason it couldn’t be exported.  

According to Reuters, this is a “gray area”, but one that is “thought to stand a good chance of getting export approval”.

The news agency notes that “such condensates trade at a heavy discount to the benchmark West Texas Intermediate crude and global oil futures, meaning oil producers could make an economic case for exporting it.”

On 31 January, US Congress held its first hearing in nearly 25 years on crude oil exports, to “explore opportunities and challenges associated with lifting the ban on U.S. crude oil exports.”

Sen. Lisa Murkowski (R-Alaska), who is leading the initiative, reiterated her call for President Obama to end the prohibition against exporting crude oil produced in the United States. “The prohibition on crude oil and condensate exports threatens record-breaking U.S. oil production and American jobs by creating inefficiencies, gluts, and other dislocations,” Murkowski said in her opening statement.

By. Charles Kennedy of Oilprice.com




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play