(June 24, 2014 – WSJ) U.S. Ruling Loosens Four-Decade Ban On Oil Exports (By Christian Berthelsen and Lynn Cook)
Shipments of Unrefined American Oil Could Begin as Early as August
The Obama administration cleared the way for the first exports of unrefined American oil in nearly four decades, allowing energy companies to start chipping away at the longtime ban on selling U.S. oil abroad.
Read the full story here: http://online.wsj.com/articles/u-s-ruling-would-allow-first-shipments-of...
Under the private rulings, condensate can qualify as a refined product suitable for export so long as the liquid is stabilized and distilled, according to officials and industry executives.
Stabilization, a process that heats up oil to boil off some of the most volatile gases, has long been an early step in energy production, transportation and refining. Equipment to stabilize oil is common in energy states like Texas. Distillation is an increased step, industry sources said, but far short of refining or turning condensate into finished fuels.
If the volume of minimally processed condensate exports reaches a large scale, it could undermine investments by several companies in refineries and mini-refineries known as splitters that were made based on the companies' previous understanding of the law, said Rusty Braziel, an energy consultant.
Nearly 20 refining projects with capacity of more than 900,000 barrels a day have been proposed and are in various stages of development, according to Credit Suisse Group. This fall, Kinder Morgan Inc. plans to start a $360 million condensate splitter near the Houston Ship Channel that is supported by long-term contracts with BP PLC.
