Enterprise Gears up to Export Oil
Several midstream companies have had to do something they didn't think imaginable five years ago: reverse the flow of pipes that typically accommodate U.S. supply. With U.S. crude supplies growing every day, Enterprise Products Partners is looking to start exporting the stuff. The company plans to transform two of its Gulf Coast facilities into oil export terminals.
While the plan is ambitious, there is one small hitch. Since 1979 the U.S. hasn't allowed the exportation of crude oil to countries not in a free trade agreement with it, and a special permit is required to even export to countries in free trade agreements with the U.S. In this video, Fool.com contributor Tyler Crowe looks at why this rule will pose problems for the U.S., and advocates that we address this export ban sooner rather than later.
The growing production of natural gas from hydraulic fracturing and horizontal drilling is flooding the North American market and resulting in record-low prices for natural gas. Enterprise Products Partners, with its superior integrated asset base, can profit from the massive bottlenecks in takeaway capacity by taking on large-scale projects. To help investors decide whether Enterprise Products Partners is a buy or a sell today, click here now to check out The Motley Fool's brand new premium research report on the company.
The article Enterprise Gears up to Export Oil originally appeared on Fool.com.Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool recommends Enterprise Products Partners L.P. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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