Posted on 01/13/2016 6:48:20 AM PST by thackney
The ink is barely dry on legislation to lift a 40-year-old ban on exporting U.S. crude and energy companies already are jockeying to ship American oil overseas.
Two tankers filled with freely traded U.S. oil have pulled out of Texas ports in the past two weeks, with more shipments expected. The first American oil sales abroad are flowing to Europe but, in the longer term, Latin America and Asia could become natural markets, according to industry experts.
U.S. oil sales to foreign buyers have been quick to start after President Barack Obama signed the bill that abolished the crude export ban less than a month ago. Big energy infrastructure companies including Plains All American Pipeline LP and Enterprise Product Partners LP have spent the past five years pouring billions of dollars into building new pipelines, oil storage tanks and dock space at ports.
The first freely traded cargo of U.S. oil was shipped from Corpus Christi, Texas, on New Year's Eve. ConocoPhillips pumped the oil from around Karnes County, Texas, 60 miles south of San Antonio. From there it will travel about 5,000 miles to Bavaria in Germany.
A second cargo of U.S. oil shipped from Enterprise's Houston terminal at the start of the year is sailing to Marseilles, France. From there it will move by pipeline to a refinery in Switzerland.
During the drilling boom, infrastructure companies reworked the country's pipeline network so American crude could move from inland shale fields in West Texas and North Dakota to the coasts where most refineries are located. One such hub is Corpus Christi, where pipeline company NuStar Energy Inc. has been quietly building out its oil network with an eye toward exports.
(Excerpt) Read more at wsj.com ...
gud
Step number 1
Hallelujah.
Right about now our government should be topping off and expanding our Strategic Oil Reserves. If I remember correctly Obama lowered and sold off a bunch of that a few years ago.
Obama plans on waiting till the price goes back up to $150 bBL until he even thinks about that.
Sucks. Thanks GOPe.
Congress and the President have decided to sell more oil out of the the SPR.
America’s (not so) Strategic Petroleum Reserve
http://thehill.com/blogs/congress-blog/energy-environment/260366-americas-not-so-strategic-petroleum-reserve
November 17, 2015
To pay for the new federal budget deal, which President Obama recently signed into law, Congress has agreed to sell 58 million of the 695 million barrels of the United States’ strategic petroleum reserve (SPR).
Nothing like selling at a low and taking a loss....
Those privately owned resources and petroleum are not yours.
Exporting a little expensive light sweet surplus crude oil while importing cheaper heavy sour our refineries are already optimized to use keeps more jobs in the US and lower prices in the US.
And so we repeat the same conversation you start on every related thread.
A little now......
There are two sides to every story, admit it. You can't take anyone criticizing your little monopoly.
As the US production of more light sweet has grown from our shale production, more refineries have made some modifications to use more of this local supply.
It will continue if it makes economic sense. As oil prices are cheaper, the difference between light sweet and heavy sour becomes less. With less price delta, it makes more economic sense to modify refineries because the transportation cost begin to offset the quality cost.
The dream that the US will pay below market rates is just silly. It comes from the belief that the demand curve rules economics and ignores the supply curve. Live in reality, not in fantasy.
And not the personal insults start.
By the way, expanding the market is the opposite of a monopoly.
God Bless.
Why are we importing oil if we can export oil? We should be energy independent. I am just fundamentally opposed to this and of course the bill got passed by a bunch of Reublicans. Free Traitors. Once in awhile there is just something you should not sell.
I agree with you.
This is a mistake. The GOP is stupid when it comes to economic matters.
We’re not only selling a finite resource, but we are selling it when the price has dropped.
Deny you are a paid hack for the oil industry then I will cease that “attack” as you call it. It was just an accusation not an attack. There is nothing wrong with being a paid oil industry public promoter. Just be honest about it and who you are.
This makes me want to throw up.
I do not work for an oil or gas company and never have. I do work for engineering and construction companies that are normally hired by oil, gas, pipeline, refining or petrochemical companies.
Those refining and petrochemical companies like lower prices for oil and gas. It makes their feedstock cheaper.
Most of my work currently is related to storage and movement of Natural Gas Liquids. Our business has greatly grown because ethane and propane are cheap. More companies are installing petrochem plants to buy more of the products we move.
I get it you are really a comedian.
THE BIGGEST OIL MARKET IN THE WORLD IS IN THE USA, BY AN ORDER OF MAGNITUDE.
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