U.S. clears way for some oil exports by Pioneer Natural, Enterprise Products

|About: Pioneer Natural Resources C... (PXD)|By:, SA News Editor

Pioneer Natural Resources (PXD) +4.2% AH and Enterprise Products Partners (EPD+1% after WSJ reports the U.S. government has taken steps to allow the two companies to export condensate that could be turned into jet fuel or diesel.

Under current rules, companies can export refined fuel, such as gasoline and diesel, but not oil itself; the government's new approach reportedly redefines some ultra-light oil as fuel after it has been minimally processed, making it eligible for sale abroad.

The first shipments - which could begin as soon as August - likely will be small but ultimately could include much of the 3M bbl/day of oil energy companies are pumping from shale, industry experts say, depending on how regulators define what qualifies for export.