Thursday, June 26, 2014

A Quiet About-face?

Guest blogger: Livia Wiley, SimSci Product Marketing Manager
On June 25, 2014, the U.S. Commerce Department approved the sale of unrefined oil exports outside North America “on a limited basis”—the first in more than 40 years. This quietly reported about-face is driven by the fact that the U.S. has an abundance of light oil from its shale formations.  It can be shipped easily without being refined. It is expected that beginning in August, the Eagle Ford Shale formation in south Texas will begin shipping ultra-light condensate, “so long as the liquid is stabilized and distilled”.

I think everyone can agree this decision has been a long time coming, and the push to further expand the “unrefined oil” export market is just beginning. As quiet as this announcement was, expect to see further developments in shale oil exports as this play is just as advantageous for the U.S. Commerce Department as it is for big oil.

Want to know SimSci’s play in shale oil & gas? Visit experience.simsci.com