Refining the impact of oil exports

http://ift.tt/eA8V8J The energy industry was jolted late Tuesday when it emerged that the Commerce Department had granted approval to two U.S. firms to export condensate with only minimal processing. If you are wondering why something that sounds so esoteric could have knocked refiner Valero Energy's stock down by 10% on Wednesday, you are partly right: That drop looks overdone. Exploration-and-production firms producing condensate stand to benefit if more exports of condensate are allowed, as they will be able to charge more for it. As things stand, while exports of refined oil are allowed, most exports of crude oil, including a lot of condensate, has been prohibited since the 1970s.



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