Eagle Ford Crude to Canada? - Valero Gets Approval

Valero Quebec City Refinery

Valero received US Department of Commerce approval to ship Eagle Ford crude oil to a refinery in Quebec City, Canada. A shipment has yet to set sail, but the company expects it could save $1-2 per barrel by utilizing Gulf Coast (Eagle Ford) volumes versus crude shipped across the Atlantic.

The Department of Commerce permit was approved in November and is good for 12 months. The permit restricts exports to Eastern Canada. Valero has not indicated when it will begin making shipments to the Quebec refinery from the Gulf Coast.

Read the full article at bloomberg.com

Port of Corpus Christi Expansion Driven by Eagle Ford Exports

The Port of Corpus Christi is seeing growth not many expected due to the Eagle Ford Shale. Many oilfield products can be supplied by water and waterborne routes can provide needed flexibility for exports. The Gulf Coast has the largest refining and chemical complex in the world along the water's edge. If a pipeline out of the play can't quite get the product where it needs to be, there's a good chance a barge or tanker can. The M/V Pennsylvania, an oil tanker operated by Crowley Maritime Corporation, entered the Port September 26, 2012, for the first time. The ship has capacity to move 330,000 bbls of petroleum products and sails under the U.S. flag. The flag is significant because the Jones Act only allows domestic ships to move products between U.S. ports.