NEW YORK: Pioneer Natural Resources Co said on Wednesday it has benefited from improved pricing as a result of its ability to sell an ultra-light oil called condensate outside of the United States.
The oil was previously sold at around $15 a barrel below US crude oil prices. Prices for the historically discounted grade have improved significantly due to Pioneer's license to export the oil, the company's CEO said.
"Pricing continues to improve," Pioneer Chief Executive Officer Scott Sheffield said during a webcast of his presentation at the Barclays CEO Energy-Power Conference on Wednesday. He did not offer specifics on how much the price has increased.
Pioneer also said it is in negotiations with foreign buyers to sell condensate, which the company produces and has the authority to export.
Pioneer, along with Enterprise Product Partners LP, received the green light from the US Commerce Department in March to export condensate, a ruling that became public in June.
In July, South Korea and Japan purchased the first condensate from the United States since what appeared to be an easing of a 40-year ban on US crude oil exports.
But while the two companies received the approval, applications from at least three other companies have been since put on hold.
Pioneer has exported two cargos already, Sheffield said. One cargo was shipped to South Korea and the other to Europe.
Sheffield added that he expects the Commerce Department to approve several more applications to export condensate, provided it goes through the proper distillation process.
He also said he is optimistic that the Obama administration or the next administration will fully remove the ban on exporting of crude oil, considering geopolitical issues in Russia and Europe.
The push to export oil comes amid the US shale boom as the glut of light oil from major shale basins across the country is causing a bottleneck at refineries due to production quickly outpacing the capacity to refine light grades of crude oil.
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