• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 11 hours EU has already lost the Trump vs. EU Trade War
  • 2 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 1 min Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaigne to lower expectations.
  • 7 hours Climate Change Consensus Shifts in Wind, But Gas Is Still the Right Move
  • 9 hours World oil demand will keep growing until 2030, climate-damaging emissions longer, says IEA
  • 1 min Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 14 hours Shale Gas News – November 9, 2019
  • 17 hours ''Err ... but Trump ...?'' #thedonkeystays
  • 4 hours Iran's Master Plan?
  • 10 hours Does .001 of Atmosphere Control Earth's Climate?!
  • 2 hours Iran Finds New Oil Field With Over 50 Billion Barrels: Rouhani
  • 19 hours The lies and follies of the "cry wolf" enviros: No more fire in the kitchen: Cities are banning natural gas in homes to save the planet
  • 18 hours CHK Trading @ 90 Cents
  • 10 hours Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

White Houses Inches Closer To Lifting The Crude Export Ban

The U.S. government just took the largest step yet to erode the ban on crude oil exports.

The Department of Commerce official told Reuters that the federal government is “acting favorably on a number of applications” that are seeking an oil swap with Mexico. In other words, the Obama administration plans on greenlighting the limited export of light oil to Mexico, and in exchange the U.S. will import heavier Mexican oil.

A ban on exports from the U.S. has been in place for over four decades. Only Canada and Mexico have certain exemptions under the law. But in this case, the government needs to grant permits for swaps. Related: PV Solar Could Have Some Serious Competition

Mexico sought the swap in order to obtain higher-quality light oil for its refineries. Heavier oil from Mexico also works well with American refineries equipped to handle that type of crude.

The Commerce Department is expected to finalize the licenses, which are good for one year, at the end of August. Although the Reuters source did not reveal how much oil would be allowed to be exported under these licenses, Mexico’s state-owned oil company Pemex had applied for about 100,000 barrels per day earlier this year. Related: The “Thin Green Line” Holding Back U.S. Energy Exports

The move is just a small one for now. Companies swapping oil have to take in a barrel for everyone that they export, so it is not clear the U.S. will be able to achieve large-scale exports on a net basis. Still, the move is a welcome one for the industry, particularly for drillers in South Texas that produce lighter forms of oil and have been faced with a glut and depressed prices. A swap for Mexican oil will provide a small stimulus to drilling. And with oil prices at six-year lows, any help will be welcomed in the oil patch. Related: This Nation Could Finally See A Shale Breakthrough

The bigger effect could be in the political arena. The U.S. Congress, led by Sen. Lisa Murkowski (R-AK) in the Senate, along with the support of Speaker John Boehner (R-OH) in the House, are moving legislation forward that will remove the ban on exports that has been in place since the 1970s.

By approving the swap of oil with Mexico, the Obama administration could be signaling its intent to work with the Congress on this issue. No doubt the move will add further momentum to the legislative push.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play