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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This segment is from Wednesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.