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.
Joel South and Taylor Muckerman have no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.