Dicker/Cramer: End of the Export Ban Means the End of the Game for Refiners
NEW YORK (TheStreet) -- I was talking to Jim Cramer today about the end of the crude oil export ban, which is the way I view the recent decision made by the U.S. Commerce Department to classify "condensates" as a refined product.
The ruling was delivered specifically to Pioneer Natural Resources
All of these companies want to capture a global price of crude oil that has been running more than $6 dollars a barrel higher than their own and in some local cases as much as $20 a barrel higher. That was the incentive for Pioneer CEO Scott Sheffield to look to create this workaround through the Commerce Department instead of seeking a full end to the 40-year old export ban, which would require an act of Congress.
The E+P companies that can access these distillation services and access higher global markets will be the biggest winners.
For shareholders of refinery stocks, however, this is about the worse news that they could get. Refining is all about margin and two of the U.S.'s largest independent refiners, Valero
I talk more about this small Commerce Department ruling with big implications for the oil industry with Jim in the video above.
At the time of publication the author had no position in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.