It is a common sense or logical issue
However, Armstrong said those private rulings have contributed to a "paralyzing impact" on the export potential.
"We were encouraged six or seven months ago when the BIS (U.S. Bureau of Industry and Security) and the government started talking about the issue early, because normally they wait until it's a crisis to act," he said. "Then the worst of all worlds happened when they issued two (rulings) that indicated that it was OK if you process it (condensate) to the level that we all agree makes sense. Then they quit issuing those because they're not sure, because the politicians became involved, and they're worried about gasoline prices. And now it's more of a political issue than it is a common sense or logical issue.
"If you don't know if you're going to be able to export, you don't want to go out and build multimillion dollar splitters," Armstrong added.
He argued that the "biggest regulatory issue facing us as an industry is the absence of clarity on crude oil or condensate exports." The lighter and sweeter crude oil being produced by the shale plays does not much the heavier crude used to operate Gulf Coast refineries, he said, so it is key to export more of the light crude and import the heavy.
"We're anxiously watching paint dry," Armstrong said. "Either exports or a more sophisticated level of processing is going to be necessary to balance the market without causing hardships to the producers and basically restricting activity levels in the U.S. The energy business has been the single biggest stimulus to the economy since the recession, and I really hope the government gets their act together."
But he's not holding his breath.