Crude Summit: US could allow more crude exports

OREANDA-NEWS. The US could allow more crude exports in the future by issuing Frequently Asked Questions (FAQs) to broaden what is an acceptable level of processing for oil exports, said Sutherland Asbill & Brennan partner Jacob Dweck.

The BIS on 30 December issued guidance stating distilled US condensates can be exported as freely as other refined products. The public guidelines clear a path for rising US exports of ultralight supply from fields like the Eagle Ford in Texas. ?Those FAQs "manifest the maturation and adoption of a new US crude oil exports policy - one specifically suitable for the low oil price environment," Dweck said today at the Argus Crude Summit in Houston, Texas. "The FAQs are a pliable approach, allowing the administration to expand the scope of allowed exports gradually, on a grade-by-grade basis, while taking into account evolving market consequences."

Condensate exports have been a hot topic since last year, when the BIS cleared Enterprise - whom Dweck represents – and US independent Pioneer Natural to export distilled condensate. Private Peaker Energy said it received a similar clearance the year before. Shell recently was also cleared to export US distilled condensate. UK-Australian resources group BHP Billiton has said it would export condensate without seeking official confirmation, while others, including Trafigura and ConocoPhillips, have sought BIS clearances.

The FAQs spell out a safe "fairway" for condensate exports, Dweck said. Under the guidelines, exportable product must be a hydrocarbon feedstock over 50 API gravity, processed in a distillation tower that uses heat gradients to separate most of the C4 NGLs and producing streams that could be suitable for non-refining purposes.