Oil Exports Won't Close the Crude Oil Price Gap

Pioneer Natural Resources (NYSE: PXD  )  CEO Scott Sheffield is the most recent domestic energy producer to clamor for allowing crude oil exports from the United States. According to a recent Platts article, Sheffield said a failure to open up exports could have a negative consequence on the U.S. drilling rig market, leading to a possible domestic crude price $30 less than international prices. While a glut of oil could temporarily lead to a widening WTI-Brent crude spread, the $30 spread Sheffield mentioned is unlikely. Yes, the spread reached $30 in 2011, but increased crude-by-rail transportation, the reversal of the Seaway pipeline, and additional takeaway capacity should keep the crude spread much closer.  

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  • Report this Comment On April 13, 2014, at 12:43 AM, sporttster wrote:

    The ONLY way we should ever allow oil exports is if OUR needs are met first! Otherwise our oil just goes overseas and doesn't benefit us one bit. We should be using OUR oil first over imports and if there's any needs beyond that, then import. And then and only then should oil exports be allowed. We need to be using our own oil first!!

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