There are only a limited number of circumstances in which the Department will approve applications to export crude oil. Three licenses were for exports to Canada and the rest were for exports of California heavy crude oil, mostly for use as bunker fuel or to Far East markets where environmental restrictions are more liberal than they are in the United States. Heavy California crude is of such poor quality that it is mainly used for asphalt production or mixed with residual fuel oil for bunker fuel for ships. Those licenses are valid for 90 days. Applications for the export of domestically produced crude oil for consumption or use in Canada may be approved provided that none comes from a Naval Petroleum Reserve.
Licenses are valid for one year.
Therefore, I will address these controls in greater detail. This provision effectively blocks the export of crude released from the SPR unless there is a compelling national interest to permit it. Although this is a useful option to have, to date we have not received any applications for the export of SPR crude. Our regulations also contain a License Exception that permits the export of foreign origin crude oil that is owned by a foreign government or its representative which is imported into the SPR for storage under an agreement with the United States Government. If the foreign oil has been commingled with domestic crude oil in the SPR, the export may only be permitted if the Energy Department certifies that the oil to be exported is the same quality and quantity that was imported into the United States.