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Continental Resources (NYSE:CLR) is placing South Korea at the top of its list of potential crude oil and condensate export destinations as the U.S. company is considering exports, chairman and CEO Harold Hamm - who is also Donald Trump’s energy advisor – said on Thursday.
Continental Resources had included oil exports in its long-term plans to grow production, Platts quoted Hamm as saying.
“The first people that called me to congratulate on lifting the ban was South Korea,” Hamm noted.
The U.S. lifted in December 2015 four-decade-old restrictions on oil exports.
“Continental is capable of making those deals without other parties,” Hamm said, commenting on the fact that his company would not rely exclusively on traders to ship oil to export destinations thanks to arbitrage windows.
As early as in May this year, Hamm said that Continental was seeking to sell Bakken crude oil to South Korea.
“And we are going to be able to do that. We are going to have Bakken oil going to South Korea,” Hamm said back then.
Yesterday, Hamm said at the S&P Global Platts Global Energy Outlook Forum that if the United States were to go all out with oil production, it could probably double to 20 million barrels per day, but that it would be “foolish for us to do that” because it would create an oversupply.
Related: A Major Red Flag? Chinese Oil Demand Growth Could Shrink 60% In 2017
U.S. exports of crude oil hit a record level of 692,000 bpd in September, according to the U.S. Energy Information Administration (EIA).
Platts attributed the increase to wider spread between the Brent and WTI, increased European refining margins for US and Canadian crudes, and cheap freight rates.
In October, however, U.S. crude oil exports dropped by 201,000 bpd to 491,000 bpd, on the back of higher Suezmax freight rate and narrowed Brent/WTI spread, an S&P Global Platts analysis said.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.