US reportedly relaxing ban on crude oil exports

Al Jazeera America | June 24, 2014 | Al Jazeera/Reuters Column

The move would effectively loosen restrictions put in in place nearly 40 years ago at the height of the energy crisis

The United States is relaxing a decades-long policy that has largely prohibited exports of unrefined American crude oil, and will now allow two Texas-based firms to sell ultra-light oil known as condensate overseas, the Wall St. Journal (WSJ) reported Tuesday. 

The move effectively loosens a ban on exports that have been in place for nearly 40 years, brought in at the height of energy crisis.

The WSJ report said that a ruling by the U.S. Commerce Dept.'s Bureau of Industry and Security will now allow Enterprise Products Partners LP of Houston and Pioneer Natural Resources Co. of Irving to export the oil to international buyers, who would then be able to turn that oil into diesel, gasoline and jet fuel. 

Last month, U.S. Energy Secretary Ernest Moniz said at a press briefing in South Korea that overseas sales of crude oil might soon be allowed because domestic stockpiles have hit record highs above and beyond refinery capacity in the states. 

Oil production has been spurred in recent years due in large part to hydraulic fracturing, often referred to as fracking.

But at present, U.S. companies are allowed to only export refined fuel as a result of the 1975 ban on crude oil, with only a few exceptions allowed. 

Alaska Republican Sen. Lisa Murkowski urged the Obama administration on Tuesday to fully lift the 40-year-old ban on crude exports.

"Commerce's decision to allow companies to process condensate and export the resulting products is a reasonable first step that reflects the new reality of our energy landscape," Murkowski, the top Republican on the Senate energy committee, said in a release. "I continue to urge the administration to fully lift the ban on crude oil and condensate exports."

Al Jazeera and Reuters 

http://america.aljazeera.com/articles/2014/6/24/oil-condensate-export.html?utm_campaign=ajam&utm_source=Twitter&utm_medium=SocialFlow

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commented 2014-06-24 23:32:40 -0400 · Flag
This is truly bad news for it would incentivize fracking which contributes to global warming and sends us in the exact opposite direction that we need to go. Also, the US consumes at least 18 million barrels of oil per day of which we may produce 10 million barrels domestically. Therefore, we’re hardly in a position to be selling it. However, if our objective is to make the oil companies more money, rather than for the US to become energy independent then this is exactly the way to do it.
@PAUSEnergy tweeted this page. 2014-06-24 22:09:36 -0400
PAUSE, People of Albany United for Safe Energy
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