• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 1 hour Here's your favourite girl, Tom!
  • 6 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 6 hours Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
  • 2 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Australian Hydroelectric Plant Cost Overruns
  • 4 hours China's Blueprint For Global Power
  • 4 hours Nigeria Demands $62B from Oil Majors
  • 20 hours Brexit agreement
  • 4 hours IMO 2020:
  • 19 mins Canada Election Deadlock?
  • 7 hours Ford Planning Huge North American Charging Network
  • 23 hours The Problem Is The Economy, Not The Climate
  • 21 hours 5 Tweets That Change The World?
  • 19 hours Bloomberg: shale slowing. Third wave of shale coming.
Alt Text

The Easy Money In European Natural Gas Is Gone

Traders are unable to take…

Alt Text

Are Natural Gas Prices Set To Spike?

Natural gas inventories have plunged…

Alt Text

European Gas Prices Fall To One-Decade Low

European gas prices fell to…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Premium Content

What Would U.S. Energy Exports do to Prices at Home?

Lawmakers in Washington say expanded energy exports could strengthen the U.S. hand overseas while at the same time shielding the economy from overseas shocks. How that affects U.S. consumers, however, depends largely on forces at home, AAA said Monday.

With Russian holding the energy cards in Eastern Europe, House Speaker John Boehner, R-Ohio, said it was time for Washington to act. In a letter to Central European leaders, the speaker said President Barack Obama should sign off "immediately" on pending export requests for liquefied natural gas to help U.S. allies overseas.

At the IHS CERA Week energy conference in Houston last week, U.S. Sen. Lisa Murkowski, ranking member of the Senate Energy Committee, struck the same chord for oil. She said reversing a ban on domestic crude oil exports could help establish the United States as the premier global superpower while creating more jobs at home. Adam Sieminski, director of the U.S. Energy Information Administration, said he was "quite prepared" to review the issue, though how that affects the domestic market remains to be seen.

Related Article: Coal’s Comeback Year Runs into Trouble

Michael Green, a spokesman for AAA, told Oilprice the jury is out on just how increased exports could affect consumers in the United States. Increased exports, he said, could stimulate oil production and reduce some market volatility.

"On the other hand, exports would increase demand for domestic oil, which could push prices higher in the United States," he said. "Refineries in many parts of the United States currently have access to relatively inexpensive crude oil and could lose that cost advantage if policymakers allow expanded oil exports."

Green said Russia's military response to the Ukrainian row overseas caused oil prices to spike last week.  By Monday, however, Brent crude was trading below the $108 per barrel mark, down by more than $1.00 amid disappointing economic data from China. The decline was limited because of simmering tensions over Ukraine, though unless there's some form of major response to Russia's actions overseas, petroleum prices should be relatively unaffected, the spokesman said.

Related Article: Lingering U.S. Winter and Ukrainian War Could Spark Perfect Gasoline Storm

AAA said Monday's national average price of $3.49 is only slightly higher than last week, but marked the 31st consecutive day of increases. South Carolina reported the lowest state average with $3.19 for a gallon of regular unleaded while California had the highest in the Lower 48 with $3.91.  This time last year, the national average price was $3.70 per gallon.

Green said the steady increase in gasoline prices is largely related to refinery maintenance and the shift to the summer blend of gasoline, which is more expensive to make. Daylight Saving Time means days are longer and warmer months are ahead, which could lead to an increase in demand as cabin fever breaks. The spokesman said there's not much volatility on the horizon, however, and "unless there are unexpected problems, it is likely that prices will peak at the lower end of our springtime forecast of $3.55-$3.75 per gallon."

By Daniel J. Graeber of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Bill Simpson on March 12 2014 said:
    Sure, sell foreigners all the oil and gas in the US so it runs out faster, than if we just consumed it ourselves. I'm sure when it is all gone, they will return the favor. We're so popular all across the globe, that the few exporters will line up to sell us what oil remains on planet Earth.
    What's the plan for when the finite fossil fuels run out anyway? Magic to run the country? Evacuate the cities for primitive farming using draft animals and hand tools? The price isn't $100 a barrel because it is getting more abundant and of better quality.

Leave a comment




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