* Valero gets license to export US crude to Quebec refinery
* BP, Shell have similar licenses due to growing US output
HOUSTON, March 12 Valero Energy Corp has
secured U.S. government permission to ship U.S. crude oil to
Canada, joining other companies seeking to do the same in light
of rising output.
Chief Executive Bill Klesse told analysts last week that
Valero has the required license from the U.S. Commerce
Department to ship Texas crude from Corpus Christi to its
refinery in Quebec City, and aims to do so this summer.
He said Valero's license allows the company to ship up to
90,000 barrels a day for the year. Valero spokesman Bill Day
declined on Tuesday to say specifically when this summer the
company would begin those shipments.
Royal Dutch Shell and BP Plc both received
similar export licenses last year.
Surging production from U.S. shale and tight oil plays such
as the Eagle Ford and Permian Basin in Texas and North Dakota's
Bakken has increased U.S. domestic output to its highest level
Some refiners, including Valero, no longer accept
light-sweet crude imports at their U.S. Gulf Coast plants
because domestic production easily fills that need.
Refiners also are increasingly investing in their plants to
be able to run more of that lighter crude.
Klesse told analysts at the Bank of America Merrill Lynch
Refining Conference last week that the Gulf Coast is
increasingly "flooding" with U.S. output as more pipeline
projects come online to move it from Texas plays or the U.S.
crude futures benchmark hub in Cushing, Oklahoma.
"There's so much oil, it's got to be moving. Our view is
it's flooding the Gulf Coast," Klesse said. "We're going to take
some to Quebec."
U.S. law requires companies to get a special license to
export U.S. crude oil, and Alaska routinely exports some crude.
Shipments to Canada aren't new either.
Valero's Quebec refinery now runs imported crude, and
provides refined products for Eastern Canada and the U.S. East