Enbridge Inc (USA) (ENB), Enbridge Energy Partners, L.P. (EEP): Three Can’t Miss Quotes for Energy Investors This Week

Big Oil is like a hamster running on a wheel. When a barrel of oil has been pumped out of the ground, it has to be replaced by another barrel of new reserves. That becomes an increasingly difficult task when most of the Earth’s conventional wells have been tapped out.

America, oil exporter?

Conversations are beginning on Capitol Hill between lawmakers and oil industry representatives about the potential of U.S. crude oil exports.

“LNG exports were the first wave from the American energy boom. And crude oil, I think, will be the next one.” — Blake Clayton, Council On Foreign Relations

The U.S. Export Administration Act of 1979 restricts the export of crude oil out of the country. But there’s a growing mismatch between the heavy crude U.S. refiners can process and the light, sweet type that’s coming out from the Bakken and Eagle Ford. This mismatch means the U.S. could soon face a supply glut of sweet crude. To get around this issue, some economists suggest trading U.S. light crude with heavier oil from other nations.

In 2012, the U.S. was a net petroleum product exporter, sending 2.6 million bpd of refined output overseas. Could the country become an exported of crude oil as well?

Foolish bottom line

The oil patch is alive and growing, but it won’t be a gentle ride for all the players involved. But by carefully listening to conference calls and industry reports, investors can sometimes avoid traps and exploit hidden opportunities.

The article 3 Can’t Miss Quotes for Energy Investors This Week originally appeared on Fool.com and is written by Robert Baillieul.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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