Texas-based oil firms ConocoPhillips, NuStar and Enterprise Product Partners are racing to see who will be the first to export oil from the United States after Congress lifted the 40-year-old ban earlier this month.
Three Texas-based oil firms are racing to see who will be the first company to export oil from the United States in over 40 years.
Congress lifted the ban on U.S. oil exports, which was put in place in 1975 in an attempt to stabilize fuel prices in the wake of the 1973 Arab Oil Embargo, earlier this month as part of the omnibus government spending bill for 2016.
San Antonio, Texas-based NuStar and ConocoPhillips of Houston both plan to complete the loading of oil from the Eagle Ford Shale region of Texas at NuStar’s North Beach Terminal at the Port of Corpus Christi on Thursday, according to a joint statement from the companies. The firms did not disclose the quantity of the shipment of U.S.-produced light crude, but said ConocoPhillips has committed to sell its portion of the cargo to Swiss-based international trading company Vitol Group.
“Based on our investments in Corpus Christi and our South Texas pipeline system, NuStar was well-positioned, equipped and staffed to immediately begin loading cargoes for export,” NuStar President and CEO Brad Barron said in a statement. “And we plan on further expanding our Corpus Christi operations to provide more options to our customers to move Eagle Ford Shale crude oil, whether it is being moved domestically or internationally. In fact, we are currently in the process of developing a second private dock in the Port of Corpus Christi.”
The announcement comes less than a week after Houston-based Enterprise Product Partners said in its own press release it had secured the first export contract for U.S. oil since the ban was lifted. Enterprise said it would load a 600,000-barrel cargo of domestic light crude at the Enterprise Hydrocarbon Terminal (EHT) on the Houston Ship Channel during the first week of January 2016.
“We are excited to announce our first contract to export U.S. crude oil, which to our knowledge may be the first export cargo of U.S. crude oil from the Gulf Coast in almost 40 years,” said A.J. “Jim” Teague, Enterprise COO and general partner. “Enterprise’s integrated system enabled us to quickly respond to customer demand for U.S. crude oil by international markets.”
“We applaud the actions of Congress and President Obama to remove the ban on U.S. crude oil exports,” added Teague. “This law facilitates economic growth and job creation for the United States as well as enhances our national and energy security. This action provides new markets to domestic producers, especially producers of light crude oil, and will provide global markets with supply diversification.”
Correction: A previous version of this article stated Eagle Ford is the name of the tanker vessel used by NuStar and ConocoPhillips to transport their first oil shipment. Eagle Ford Shale is an oil producing region of Texas from which the oil was extracted for export.