(May 23, 2014 – Reuters) After Washington chats, drillers hopeful U.S. will ease oil export ban (By: Valerie Volcovici)
WASHINGTON, May 23 (Reuters) - Recent meetings between U.S. oil producers and Commerce Department officials have fueled industry hopes that the Obama administration may soon begin to ease a longstanding ban on oil exports...
Read the full story here: http://www.cnbc.com/id/101700359
… At Columbia University this month, Obama adviser John Podesta said the administration was "taking an active look at what the production looks like, particularly in Eagle Ford, in Texas", and whether refiners can absorb that type of oil.
While condensates can be blended into the crude supply or used by Gulf Coast refiners, most of them are configured to run heavy oil and so have limited demand for it.
In late April, Valero Energy Corp, the largest U.S. independent refiner, said it had reduced operations at two refineries that were unable to process inland U.S. crude that was becoming increasingly "light".
Last week, Energy Secretary Ernest Moniz said in Seoul that the issue was "under consideration" but said primary responsibility rested with the commerce department.
Rusty Braziel, president of Texas-based RBN Energy, said he expects any development in the coming weeks will be "a small-step trial balloon" to test the political reception to the rule as well as the impact on prices.
In recent few months, Braziel said he has gotten several queries from a number of different administration officials and congressional staff asking for more clarity about condensates.
"Just the fact they are asking the question made me think there is more going on here than just a few people chattering," he said.
