Capitol Hillbillies: Awash In Black Gold

As US domestic crude oil production continues to grow, so does the speculation of whether or not exports will be permitted. Since domestically produced crude oil tends to be of the lighter/sweeter variety and the penchant of the US refining complex is for heavy/sour crude, it stands to reason that we are structurally long the wrong grade. To those in the know, the qualities of each crude oil grade prevent it from being a truly fungible commodity – a fact that seemingly continues to escape most politicians. To date, the export of crude oil has proven to be a difficult sell. Although exports may happen on a case-by-case basis, a widespread repeal of the ban seems unlikely under the Obama regime. That said, fervor and momentum appears to be building as new research and opinion is published on the subject. However, make no mistake, misinformation on the crude oil market and related economics will continue to be the flavor in Washington until at least 2016. Download here