Gulf Oil and Gas accountACCOUNT

U.S. Easing of Oil Exports Challenges OPEC's Strategy

Source: Bloomberg 12/31/2014, Location: North America

The Obama administration’s move to allow exports of ultralight crude that may encourage shale drilling and thwart Saudi Arabia’s strategy to curb U.S. output, further weakening oil markets, according to Citigroup Inc.

A type of crude known as condensate can be exported if it is run through a distillation tower, which separates the hydrocarbons that make up the oil, according to U.S. government guidelines published. That may boost supplies ready to be sold overseas to as much as 1 million barrels a day by the end of 2015, Citigroup analysts led by Ed Morse in New York said in an e-mailed report.

Saudi Arabia led the Organization of Petroleum Exporting Countries to maintain its production quota at a meeting last month even as a shale boom boosted U.S. output to the highest in more than three decades. That prompted speculation OPEC was willing to let prices fall to force some companies with higher drilling costs to stop pumping. “U.S. producers are under the gun to reduce capital expenditures given lower prices,” Citigroup said in the report. “Now an export route provides a new lease on life that can further weaken crude oil markets and throw a monkey wrench into recent Saudi plans to cripple U.S. production.”

Current U.S. export capacity is at about 200,000 barrels a day, which could be expanded to 500,000 a day by the middle of 2015, according to the bank.

Oil News in United States >>

Russia >>  5/27/2020 - Gazpromneft-Aero, the aviation fuel operator subsidiary of Gazprom Neft, reports a 1.5% year-on-year increase in jet fuel sales in the first quarter o...
Norway >>  5/25/2020 - Production of crude oil and natural gas from a field within licence area PL460 in the North Sea started in March this year. Hydrocarbon reserves attri...

Brazil >>  5/4/2020 - Petrobras informs that it exported 1 million barrels of oil per day in April. This represents a new oil export record and contributes to strengthening...
Tunisia >>  5/4/2020 - Panoro Energy (Panoro) is pleased to provide a corporate update in conjunction with the publication of its 2019 annual report released on 30 April 202...

Related Categories: Coal  Electricity  General  Natural Gas  Oil 

Related Articles: Coal  Electricity  General  Natural Gas  Oil 


United States Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 | 62 | 63 | 64 | 65 | 66 | 67 | 68 | 69 | 70 | 71 | 72 | 73 | 74 | 75 | 76 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.