NuStar Energy and Conoco Phillips have finished loading the first export cargo of US crude oil in over 40 years.
The ban on exporting US crude oil was lifted on December 18. Until the ban was lifted refiners were willing to pay an average premium of roughly $5 a barrel for Brent crude over the price of WTI oil.
Since the ban was lifted that premium has disappeared.
The export cargo of oil, which has already set sail from Port Corpus Christi, was bought by the Dutch oil-trading Vitol Group.
The oil was pumped by ConocoPhillips from the Eagle Ford Shale formation in South Texas and the shipment was loaded at NuStar Energy LP’s Corpus Christi, Texas, terminal.
Port of Corpus Christi.
Omar Garcia, President and CEO, South Texas Energy & Economic Roundtable, said:
“Today is a great day for our nation, as the first shipment of oil leaves Texas soil through the Port of Corpus Christi.
“We have made great strides in protecting our national security, economy, and the future of the Eagle Ford Shale region by lifting the ban on oil exports. Exporting crude oil ensures long-term and sustainable growth throughout South Texas,”
John LaRue, Port Corpus Christi Executive Director, said:
“Infrastructure improvements at Port Corpus Christi have placed our port in a unique position as a critical component in the export of U.S. crude and condensate.
“Port Corpus Christi’s deep draft ship channel and strategic location to some of the largest production areas in the US provides a secure and competitive supply chain to markets worldwide.
“Future capital improvements including deepening the ship channel will accommodate larger vessels that are required to cost effectively supply US crude oil to global markets,”