• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 2 hours Cpt Lauren Dowsett
  • 2 hours Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 53 mins Its going to be an oil bloodbath
  • 19 mins What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 1 hour Marine based energy generation
  • 6 hours Which producers will shut in first?
  • 3 hours CDC covid19 coverup?
  • 3 hours How to Create a Pandemic
  • 4 hours Iran-Turkey gas pipeline goes kaboom. Bad people blamed.
  • 22 hours The Most Annoying Person You Have Encountered During Lockdown
  • 15 hours The idea that electric cars are lowering demand is ridiculous.
  • 16 hours Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 21 hours Natural gas price to spike when USA is out of the market

Breaking News:

IEA: OPEC Can’t Save The Oil Market

Alt Text

The Worst Oil Trades Ever Made

Wall Street is full of…

Alt Text

Another OPEC Producer Looks To Back The Aramco IPO

As the world’s largest initial…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Exxon Makes a Move We Haven't Seen in 40 Years

The energy major is pushing for exports of American oil to markets overseas.

Reports surfaced last week that Exxon is encouraging U.S. regulators to relax an existing export ban on crude. With the company's vice president of public and government affairs, Ken Cohen, telling The Wall Street Journal, "We need to rethink the regulatory scheme and the statutory scheme on the books."

Such a move hasn't been seen in America in over four decades. With oil exports to all nations except Canada having been banned since the Arab oil embargo of 1973-74.

But there is some justification today to Exxon's proposed rethink of the laws.

Prices for U.S. crude are starting to deflate in relation to other global blends. Differentials of America's benchmark West Texas Intermediate (WTI) crude against Brent oil have extended to over $10 per barrel recently.

And the dampening effects of surging U.S. oil production on pricing are only growing more widespread. Gulf Coasts blends like Louisiana Light Sweet--which formerly traded more or less in line with international prices--have recently begun to trend down, following WTI lower.

The implication being that America is awash in new crude supplies. Making this one of the best-supplied oil markets on the planet.

This sets up some interesting decisions for regulators. Do they embrace lower oil prices as an opportunity for America to benefit from cheap energy? Or do they enhance the competitiveness of domestic energy firms by allowing them to export into premium-priced international markets?

Producers for their part are pushing hard to ship crude where prices are better. Monthly crude exports to Canada--the one spot allowed under current law--have jumped by as much as 100% in 2013. You can see the spike in the chart below, from the Energy Information Administration.

US Crude Oil Exports to Canada

Last week's call from Exxon suggests big energy will make a concerted effort to open up markets beyond this. How lawmakers respond will have a big effect on oil prices going forward.

Here's to exploring new lands,

By. Dave Forest


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Vern Cornell on December 28 2013 said:
    We should allow Canada to import...approval is taking some five years do far...
    We should free up the export market for USA's crude oil...hopefully very soon.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News