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Linn Energy, LLC Message Board

  • miketelford72 miketelford72 Jun 24, 2014 6:56 PM Flag

    Could be very good news for Linn

     

    U.S. Ruling Loosens Four-Decade Ban On Oil Exports
    Shipments of Unrefined American Oil Could Begin As Early As August
    By
    Christian Berthelsen And
    Lynn Cook
    June 24, 2014 5:14 p.m. ET

    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.

    Both companies confirmed they had received the rulings.

    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.

    The Commerce Department said the companies have improved the processing of the crude in a way that qualifies it for export, even though the oil wouldn't count as being traditionally refined. Exactly how the agency defines condensate and remains unclear.

    The first shipments are likely to be small, but could ultimately encompass a lot of the 3 million barrels a day of oil that energy companies are pumping from shale, industry experts say, depending on how regulators define what qualifies for export.

    The Brookings Institution estimates as much as 700,000 barrels a day could be available for export starting next year.

    Write to Christian Berthelsen at christian.berthelsen@wsj.com and Lynn Cook at lynn.cook@wsj.com

    This topic is deleted.
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    • This is very good news, both for LINE and for American jobs. The US does not have refineries that can process this kind of crude--which we are producing in abundance; rather, we have refineries that can process heavy crude such as produced by Alaska, Venezuela and Canadian tar sands

      • 1 Reply to dinkleb
      • It is good for LINE as a natural gas centered American energy producer.

        It is not good for American jobs. Obama should get out of the way of the refining industry and encourage them to make the capital investment to use these very light and clean oils for Americans.

        My goodness please be careful. We want valued added well paid manufacturing jobs here in America. We want to restore price competition to the domestic gasoline markets.

        VLO can and would invest in the well understood technology required to process clean light American oils. If they did not have the irrational lawless Obama uncertainty over the entire American industry.

        Please just get rid of the insane corn ethanol corruption first. It was what Obama is bound to do by the RFS law and science. But then we all know about the quality of Progressive science by opinion.

    • Does this mean the end of ethane rejection? Does anyone have a data source for NGL futures?

    • Excellent post, mike another great example of my Government exporting American jobs, they say it can be dangerous to weaken the strong ,attempting to strengthen the weak!

 
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