MOSCOW, June 25 (RIA Novosti) - Two US companies have been allowed to export a type of ultralight oil known as condensate, supposedly paving way for lifting the country’s 40-year crude oil export ban, the Wall Street Journal reported Wednesday.
The publication cited "separate rulings that haven't been announced" from the US Commerce Department as legal grounds for Pioneer Natural Resources and Enterprise Products Partners to start shipping the fuel abroad.
The Wall Street Journal said the companies would be exporting condensate. Following the news report, Senator Lisa Murkowski who urged the Obama administration to fully lift the 40-year-old ban on crude exports, Reuters reported.
While the article has already stirred reactions from lawmakers, praising the Obama administration for the move, the export product in question may have little to do with the anticipated trend.
Pioneer Natural Resources uses a distillation unit to stabilize the oil it produces, which qualifies as minimal refining, technically making the resulting product no longer a crude.
The Washington Post cited an e-mailed statement from Pioneer spokesperson, explaining that the Commerce Department "recently confirmed our interpretation that the distillation process by which our Eagle Ford Shale condensate is stabilized is sufficient to qualify the resulting hydrocarbon stream as a processed petroleum product eligible for export without a license."
In a statement late on Tuesday, the Commerce Department said there has been "no change in policy on crude oil exports."
