BHP: Eagle Ford shale products OK for exports

HOUSTON, Nov. 5 (UPI) -- Australian company BHP Billiton said it's concluded oil products processed from the Eagle Ford shale play in Texas are legally eligible for exports.

The company said it plans to export so-called condensate produces from the Texas oil field, which it says it can do without explicit consent from U.S. federal authorities.

"BHP Billiton plans to export processed condensate that has been fractionated in distillation towers at our Eagle Ford operations in south Texas," a statement sent Thursday to UPI said. "After taking the necessary time to thoroughly examine the issues involved, we concluded that processed condensate is eligible for export."

In June, Pioneer Natural Resources and Enterprise Products Partners were authorized by the U.S. Bureau of Industry and Security, a division of the Commerce Department, to export condensate.

BHP said it exercised due diligence to ensure its Eagle Ford products were of a suitable quality for exports.

"The processed condensate that BHP Billiton plans to export is not crude oil under BIS regulations," the company said.

Crude oil exports are banned under legislation enacted in response to the 1970s oil embargo by Arab members of the Organization of Petroleum Exporting Countries. There are no such restrictions for petroleum products like gasoline and other fuel products.

An increase in U.S. crude oil production has led to calls to lift the ban. The Commerce Department in June said the decision on condensates does not represent a major shift in U.S. export policy.

Senate Democrats in the wake of the BIS export consent given to Pioneer and Enterprise said the Commerce Department "does not appear to possess the authority to issue exemptions for condensates or some subset of condensates from the crude export restrictions."