Houston, 12 October (Argus) — Shell today said its pursuit of a permit to export US-produced crude is limited to moving oil north into Canada – a route that is “not new to the industry.”
The company yesterday confirmed it had applied for a crude export license but left open the question of where the oil would go, with a spokeswoman suggesting “it could be Canada, it could be Europe.” Today the company clarified, saying its application is limited to exporting US crude to Canada and confirming it has been shipping crude there for years.
“For many years, Shell and others in the industry have secured export licenses to allow for cross-border transfers of crude between the US and Canada, which facilitates the optimization of crude supplies on both sides of the border. This is normal course of business and not new to the industry,” the company said.
Shell owns a 100,000 b/d refinery in Scotford, Alberta, where it also has an upgrader. The company also operates a 75,000 b/d refinery in Sarnia, Ontario.
Sources familiar with operations at BP and Vitol yesterday also said they had been granted licenses to move crude from the US into Canada. BP has not yet put its permit to use. Vitol's US crude exports north are routine for that company.
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