Do clues, new data point to shift in US crude export policy?
No one seems to know if the White House will ease crude oil export restrictions for the first time in decades, but key Obama administration officials are dropping clues and the government’s energy statistics agency appears to be compiling a trove of data which may be used to justify a policy shift.
The administration appears to be paying particular attention to the dramatic growth of domestic light crude production and the potential mismatch with US refining capacity.
Analysts believe there could be a tipping point for the White House on crude exports; a point where production and refining capacity are so off-balance that ending the de facto ban on crude exports will be a straightforward change to justify.
During a recent conference call, White House adviser John Podesta said administration officials were monitoring this ongoing dance between refining and production as it studies potential changes to crude export policy.
“We’re keeping our eye on the fact that some of the oil being produced, particularly the light crudes that are coming from Eagle Ford in Texas, whether the refining capacity in the United States is able to manage it,” he said. “It has been so far.”
Energy Secretary Ernest Moniz has made similar comments, claiming that export policy changes were being considered because “the nature of crude oil we are producing may well not be matched to our current refining capacity.”...MORE
