With the lifting of crude export restrictions in the US, the tank storage boom has begun writes Andy Lipow
A year ago, prospects seemed dim that the lifting of the US crude oil export ban would become a reality with the Congress and President at odds on nearly every issue. However, in mid-December 2015, as part of the deal on tax and spending legislation, the ban on crude oil exports was lifted.
THE DIKE IS BREACHED AND THE DAM HAS BROKEN
Prior to the lifting of the export ban, it was perfectly legal to export all the crude one wanted for use in Canada. According to the Energy Information Administration (EIA), exports to Canada grew from less than 50,000 barrels per day in 2011 to a peak of 524,000 barrels per day in May 2015. Alaskan North Slope crude oil could also be exported as long as it was transported on a Jones Act tanker.
Soon after the legislation was enacted, companies were racing to announce that they had exported crude oil to destinations other than Canada. It was fir...