THE U.S. decision allowing minimally processed super-light oil known as condensate to be freely exported may open the door to doing the same with other types of crude too, according to industry and government sources who have reviewed the ruling.

    This view, which has not been previously reported, will add to intense speculation over how much of the U.S. shale oil boom will reach overseas markets and how quickly loopholes will be opened in the 40-year-old ban on exporting domestic crude.

    The U.S. Department of Commerce determined last week that two companies that handle condensate can export it after treatment by so-called stabilizers, which use heat to shave off volatile natural gas liquids and remove contaminants such as hydrogen sulfide in order to meet pipeline specifications.

    Texas-based companies Pioneer Natural Resources and Enterprise Product Partners had sought clarity from the government over whether stabilized condensate could be exported as a petroleum product without a special license, which is needed to export unprocessed domestic crude.

    The Commerce Department said yes.

    More importantly, sources in industry and government emphasized, that determination just focused on how crude is treated. That means other types of crude that undergo similar minimal processing could potentially be exported as well.

    “Under the definition of crude oil, the API level doesn’t matter,” a Commerce Department source said, referring to the American Petroleum Institute’s scale for measuring oil’s density.(SD-Agencies)