An electronic auction will be held on April 4th by Enterprise Products Partners for its domestically produced West Texas Intermediate crude oil that will be exported from its Houston Ship Channel terminal.
Enterprise has become the largest exporter of crude oil in the United States since the federal government lifted a ban on exporting crude oil less than four years ago, which accounts for nearly 40 percent of crude oil shipments abroad. Chicago-based trading firm CME Group will conduct the online auction on behalf of Enterprise.
"With the recent success of the first ever electronic auction of U.S. crude oil for export, the market has demonstrated its demand for transparency, efficiency, accurate physical pricing and access to reliable supplies of crude oil with consistent quality standards," Enterprise Senior Vice President Brent Secrest said in a Wednesday morning statement.
Using Enterprise's distribution network, the Houston futures contract has access to more than 4 million barrels per day of crude oil, 45 million barrels of crude oil storage and 18 deep-water docks.