Peak Oil is You

Donate Bitcoins ;-) or Paypal :-)

Page added on July 30, 2014

Bookmark and Share

Ship loads first US condensate export cargo in 40 years


An oil tanker has started loading a cargo of condensate, or ultra-light oil, the first such export from the United States since the easing of a 40-year-old ban on U.S. crude exports, two sources familiar with the matter said on Wednesday.

Westport Petroleum Inc, the Franklin, Tennessee-based shipping arm of Japanese trader Mitsui & Co, chartered the BW Zambesi, an LR1 tanker, also known as a Panamax class vessel, in mid-July for the voyage.

The tanker, owned by BW Group, docked at the Galveston terminal in Texas on Tuesday, AIS data on Reuters showed.

It will load just over 400,000 barrels of condensate and is expected to arrive in Asia in early September, one source said.

South Korean refiner GS Caltex has bought the cargo from Mitsui.



7 Comments on "Ship loads first US condensate export cargo in 40 years"

  1. Plantagenet on Wed, 30th Jul 2014 10:21 am 

    The Obama administration ending the 40 year ban on oil exports is just as dumb as the Clinton administration repealing the 70 year old Glass-Steagel Act

  2. TIKIMAN on Wed, 30th Jul 2014 12:41 pm 

    So we import over 60% of our oil, while we begin to export?

    That is fucking RETARDED.

  3. Davy on Wed, 30th Jul 2014 12:57 pm 

    Tiki, it is going to be fun to see how they get their hand out of that monkey trap.

  4. Pops on Wed, 30th Jul 2014 1:28 pm 

    GS Caltex has a polypropylene plant, polypro comes from propylene which comes from condensate – wet gas & LTO.

    Not really much to do with oil as we know it…

  5. rockman on Wed, 30th Jul 2014 2:40 pm 

    “An oil tanker has started loading a cargo of condensate, or ultra-light oil, the first such export from the United States since the easing of a 40-year-old ban on U.S. crude exports”. More outright lies. From

    “The export of U.S. crude oil is generally allowed. For example, exports to Canada or exports of foreign-origin crude oil. Companies seeking to export crude oil that qualifies for such an exemption must first obtain a license from the Commerce Department’s Bureau of Industry and Security (BIS).

    The overall quantity of U.S. crude oil exports has risen from 10 million barrels in 2007 to over 24 million
    barrels in 2012, virtually all of which were destined for Canada. In 2012, exports represented about 1% of
    total U.S. crude oil production (2.4 billion barrels). By comparison, U.S. crude oil imports in 2012 were
    3.1 billion barrels with 888 million barrels from Canada.

    According to BIS data supplied to your office, between fiscal year 2008 (10/2007-9/2008) and August
    2013, 338 export license applications have been received by BIS of which 304 have been approved. All
    export licenses aside from those for Canada were for foreign-origin crude oil. The total number of export
    licenses, which are reported in dollar value, covered nearly $480 billion in potential crude oil exports.
    Using annual crude oil spot price data from the EIA for conversion purposes, this dollar value equates to
    approximately 5.3 billion barrels of crude oil approved for export. According to the EIA, 83.5 million
    barrels of crude oil were actually exported from the United States from 2008 to 2012, the most recent year
    for which data is available.”

    And that doesn’t even begin to scratch the surface of the gross misrepresentation of the true export dynamics. In addition to actual crude exports companies have used a processing angle to turn Eagle Ford Shale production into refined product status thus recently allowing the export of at least 20 million bbl to be exported to eastern Canadian refineries. And none of those exports required a license from the govt. These Canadian refineries can afford to outbid US refineries since they are substituting for more expensive Nigerian et al African crude. And these minor cracking units as well as major expansion of the export terminals in S Texas are being developed at a rapid pace.

    But here’s another part of the misrepresentation: the export of refined products. The US has become the largest exporter of refined products in the world. All the hype over exporting OIL focuses on the impact of such actions on the American consumer. Everyone here who bought OIL in the last 12 months raise your hand. I don’t see any hands raised. Now everyone one who bought some form of refined petroleum product in the last year raise your hand. Hmm…looks unanimous. LOL. And since the US exports about 3 million bbls of refined products every day to foreign customers that are outbidding American consumers for these product it should be blatantly obvious what’s impacting costs for the US consumer. And it ain’t how much oil we’re exporting.

    IOW how much does it matter to the US consumers if we export a 100 million bbls of crude oil to Country X this year or if we refine that 100 million bbls in Gulf Coast refineries and export all the products to Country X? It does make a huge difference to the US refineries and their employees/shareholders. The employees get high paying jobs and the refineries get to sell at a higher profit margin. And the US consumers get to pay more for what they actually buy since they are now competing in the global market place for those products.

  6. Nony on Thu, 31st Jul 2014 12:14 am 

    Export of raw crude is generally NOT allowed. Just to free trade partners (Mexico, Canada, and I think South Korea?) Rest of world is a no, no. That’s why there are price differences of WTI and Brent. And especially of condensate versus world condensate.

    In terms of the export, it’s not hurting the US to export while we import. It’s just about matching refinery capacity with desired grades of crude. It’s fine to import/export. We do the same with natural gas with Canada (push it into Canada at Ontario) but buy it from them in NW and NE.

  7. Arthur on Thu, 31st Jul 2014 2:53 am 

    Putin is trembling… there goes the lucrative European market. Gazprom being made irrelevant by all this US oil and gas glut!


Leave a Reply

Your email address will not be published. Required fields are marked *