SENTINEL REPUBLIC: The U.S. Oil Export Ban Is (Sort Of) Over
But make no mistake, even U.S. refiners are switching sides in this argument.
Why No Blanket Repeal of the Oil Export Ban?
Barrel Russell, president of the Unbiased Petroleum Affiliation of America, stated the choice is a towards a full repeal of a U.S. crude oil export ban enacted within the 1970s. Exporting light crude would be a boon to not only those Texas producers in the Permian and Eagle Ford plays, but also the North Dakota Bakken drillers whose main product is the light sweet oil Mexico is more able to refine.
The ban dates to the 1975 Energy Policy and Conservation Act, which Congress passed in response to that era’s oil crisis.
Congressman Henry Roberto Cuellar said: “These swaps will further positively impact energy exploration in Texas and the United States”.
Big news for the U.S. oil market last Friday. Some overseas refineries, meanwhile, aren’t configured to handle the lighter crude oil grades found in many U.S. shale basins behind what industry supporters describe as an era of abundance.
Heavy crude oil is more dense and has an API gravity of less than 20 degrees, with extra-heavy oil having a density of less than 10 degrees API.
But if further deals were to follow, economists’ expectation that it would lead to lower global, and therefore lower US prices, could be put to the test. It may be that politicians’ only greater desire, to protect their own record from criticism, will prevent US consumers from every finding out if they are right.
As previously mentioned, BIS signaled its impending approval of a number of swap transactions involving Mexico.
An unnamed official told Reuters the licenses will be valid for one year and will be formally issued by the end of August.
With a free-trade deal with the United States, York said the Mexican oil swap deal might open doors for other trading partners. This announcement is consistent with the existing legal framework that favors crude oil exports with adjacent countries.
In March, York said the debate over crude oil export policy needs to move beyond generalities to a “more substantive discussion of potential destinations and types of US crude oil that might be exported”.
Condensate refined or processed in a sure means just isn’t characterised as crude oil and is subsequently not topic to the export ban. Barton recently stated that he has secured a commitment from the House leadership to move the bill, which now has 113 co-sponsors, including 13 Democrats. That’s the conundrum facing the domestic oil industry on a grand scale.