"There will be no light sweet crude imports into the U.S. Gulf Coast," by 2015, says Valero (VLO) CEO Bill Klesse, who expects domestic shale output to take its place. This will narrow the discount of heavy crude so much, the company is nixing plans for a Port Arthur refinery. Shale oil "(affects) the competitiveness of the refining business on the world scale."
Dahlman Rose estimates that global oil and exploration could increase 9% to $595B in 2012 after the firm surveyed major oil companies. The firm says the results support a thesis for a long upcycle for the oil services sector.
SM Energy (SM +6.1%) pops after announcing an agreement to sell 12.5% of its interest in its non-operated Eagle Ford oil shale holding for ~$680M. The firm says 2011 production will still beat its current forecast. (PR)
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