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Because gas and oil prices are cheap enough in the USA, right?

From the Wall St. Journal -

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.

In separate rulings that haven't been announced, the Commerce Department gave Pioneer Natural Resources Co. and Enterprise Products Partners LP permission to ship a type of ultralight oil known as condensate to foreign buyers. The buyers could turn the oil into gasoline, jet fuel and diesel.

The shipments could begin as soon as August....

Kind of action you would expect from a Republican Administration. Oh, and it looks like it's oil produced through fracking.

Link below the fold

9:22 PM PT: Update - better link -

http://www.reuters.com/...


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Comment Preferences

  •  Tip Jar (19+ / 0-)

    The darkness drops again but now I know That twenty centuries of stony sleep Were vexed to nightmare by a rocking cradle, And what rough beast, its hour come round at last, Slouches towards Bethlehem to be born? William Butler Yeats

    by deepsouthdoug on Tue Jun 24, 2014 at 08:49:40 PM PDT

  •  If it walks like a duck.... (4+ / 0-)
    Recommended by:
    George3, Greyhound, marina, TracieLynn
  •  I never understood the ban on exporting oil (7+ / 0-)

    Oil and gas in the US is priced based on world markets in any event. What was the rationale for not allowing unprocessed oil to be exported? It would seem that there would be enough mismatches where a type of oil was available in a part of the country where there was no local refining, and it would be more economic to ship it offshore.

    "let's talk about that" uid 92953

    by VClib on Tue Jun 24, 2014 at 09:53:38 PM PDT

    •  It's idiotic, IMO (0+ / 0-)

      when we're still importing oil.

      •  TJ - but there are numerous types of oil (0+ / 0-)

        each of which takes a different refining process. Each refinery is optimized for a specific type of oil. My point is that if you are pumping a particular type of oil on the west coast, and the refineries that process it are on the east coast, why not ship the unrefined oil to Asia?

        "let's talk about that" uid 92953

        by VClib on Wed Jun 25, 2014 at 10:01:31 AM PDT

        [ Parent ]

        •  Your visualization of the Cosmic All is flawed. (1+ / 0-)
          Recommended by:
          VClib

          Anybody can do light sweet crude (or condensate).  It's the heavy sour stuff that needs special equipment.

          •  But why even have the restriction? (0+ / 0-)

            Oil in the US is priced at the world market price so why does it matter if we export oil pumped here? I assume there are transportation premiums and discounts that factor into market clearing prices.

            "let's talk about that" uid 92953

            by VClib on Wed Jun 25, 2014 at 10:17:48 AM PDT

            [ Parent ]

  •  gee, maybe gas prices might go up (4+ / 0-)
    Recommended by:
    Greyhound, blueoasis, jbob, deepsouthdoug

    after all, they use any excuse, this is a good one...

    This machine kills Fascists.

    by KenBee on Tue Jun 24, 2014 at 10:07:23 PM PDT

  •  I might be able to support this (8+ / 0-)

    if the US would impose export duties. Oil extracted in the US has massive hidden costs to taxpayers.

    Did you buy any propane this winter?? Sept 08 we exported 20k barrels a day. In Dec 2013 we exported 402k barrels a day. An increase of 20 times. Who would have thought we would have a shortages and prices would go through the roof....

    Funny I don't see the oil companies fighting the fires when rail cars explode, no its your local fire departments....

    Russia seems to have no problem selling their oil with a 30% export duty, hell their government is supported by it.

    Yesterday is but today's memory, and tomorrow is today's dream. -Khalil Gibran

    by Toyotabob7 on Tue Jun 24, 2014 at 10:31:43 PM PDT

  •  This was already in the pipeline (heh) with an (8+ / 0-)

    uptick in crude oil exports reported by the EIA in April.

    The Commerce Dept (Penny Pritzker) approves exports on a limited basis but the protocol isn't transparent. In recent years, almost 100% of the crude exports went to Canada.

    A year ago, 35,000 bbl/d was exported. That turned into 134,000 bbl/d in the first quarter of 2014, and 268,000 bbl/d in April.

    For context, the quantity could be compared to a quarter of the 1,000,000 bbl/d production in the Bakken shale region of North Dakota and eastern Montana.

    However, if the export is condensate, it's not coming from the Bakken. And, in fact, the administration did approve a pipeline last November that would carry condensate from Texas north across the border to Alberta. Condensate is used as a diluent in the production of tar sands crude. My guess is that these exports are going to Alberta for that reason.

    The oil and gas boom where fracking and horizontal drilling have taken hold is always sold as a solution to US energy independence. The US still imports crude. It seems kind of counterproductive to export and import. Fracking in Texas is producing more condensate than the market demands. The market is refineries, not you or me driving up to a gas pump. Refineries don't want condensate. But Canada will take it.

  •  Kind of a shame sending out that light sweet crude (1+ / 0-)
    Recommended by:
    deepsouthdoug

    because our refineries are set up to process that nasty Venezuelan oil. I can certainly see why Alaska would like it, East Asia needs their oil, California not as much.

    Need a gas guzzler tax on anything less than 25mpg directed towards subsidies for fuel efficient cars based on mpg.

    “Conservation… is a positive exercise of skill and insight, not merely a negative exercise of abstinence and caution…” Aldo Leopold

    by ban nock on Wed Jun 25, 2014 at 04:05:35 AM PDT

  •  That "Energy Independence" meme on hold (0+ / 0-)

    for a few years now. Raises the bullshit meter too much.

    "Societies strain harder and harder to sustain the decadent opulence of the ruling class, even as it destroys the foundations of productivity and wealth." — Chris Hedges

    by Crider on Wed Jun 25, 2014 at 06:41:17 AM PDT

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