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In 40-Year First, US Paves Way for Oil Exports
Administration allowing two firms leeway on 1970s ban
By Matt Cantor, Newser User
Posted Jun 25, 2014 12:48 PM CDT
In this May 15, 2011 photo, hundreds of drilling pipes are stacked at a rail center in Gardendale, Texas.   (AP Photo/Pat Sullivan)

(Newser) – Since the 1970s, the US has largely banned the exporting of unrefined oil. But the rules put in place after that decade's Arab oil embargo are changing: The Commerce Department is allowing two companies to export condensate, a form of ultralight oil that can be turned into gasoline, diesel, and jet fuel, the Wall Street Journal reports. While initial shipments, which could start as soon as August, are likely to be small, the rulings—not yet publicly announced—could open the way for other companies to make similar exporting requests.

The decision comes as shale formations are providing huge amounts of domestic ultralight oil, for which prices have plummeted. Companies say they can sell it for more abroad, the Journal notes. The rule change acts by broadening the definition of "refined" condensate, Quartz reports; US companies are already allowed to ship refined fuel. As for crude oil exports, "there has been no change in policy," the Commerce Department says. But the decision could have a big impact worldwide, Quartz notes, with oil prices potentially dropping.

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Showing 3 of 55 comments
anon55344
Jun 28, 2014 8:38 AM CDT
"Companies say they can sell it for more abroad, the Journal notes. The rule change acts by broadening the definition of "refined" condensate, Quartz reports;" Another example of Obama being to the right of Reagan.
FrankFurter
Jun 27, 2014 1:21 AM CDT
When Dick Cheney was president, woops, vice president, (Haliburton) he passed a bill saying fracking doesn't have to reveal any of the 500 plus compounds being pushed into the ground. Now they can sell US resources abroad at a bigger profit than selling it to you and me. But I'm sure the mess here will be covered from the profits. Right? right? right...
Liberalismiscancer
Jun 26, 2014 11:23 PM CDT
There is a lot of myth being bandied about concerning the poisoning of ground water from the fracking process. Deep shale deposits are seperated from water aquafiers by several thousand feet of rock. It is HIGHLY unlikely that a fracture is going to connect the two and allow contamination, even if it were possible for the very dense fracking fluid to be pushed up that far through rock. There may be some concern about shallow deposits, as there isn't the natural rock safety barrier in deep deposits. The solution? Stay away from shallow deposits?