Decades ago, a distiller in Scotland discovered the marketing power of 'sin...
NEW YORK/HOUSTON - Decades ago, a distiller in Scotland discovered the marketing power of “single malt” whisky, untouched by blending - a technique now being embraced by sellers of Texas crude oil.
Overseas buyers are demanding barrels that travel directly from wells to export terminals with little blending, to minimize problems introduced when crude passes multiple transport systems. The United States has become a top exporter of crude after ending a 40-year ban on exports in 2015, shipping more than 3 million barrels per day to buyers in China, South Korea, and across Europe.
With new pipelines recently opening that connect the Permian to the growing terminal in Corpus Christi, shippers say they can promote the idea of pure Permian barrels. “The ability to control quality in Corpus will be dramatically better than the ability to control quality in Houston,” said Brian Freed, president of EPIC Midstream Holdings LP, in July, just before commercial deliveries on a new pipeline from the Permian to Corpus Christi started last month.
“You have reputational issues for oil coming out of Houston because that’s heavily blended,” said Lucock.
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