For the first time since the ’70’s the United States is getting into the oil export business. In the last four decades the only country the US exported oil to was Canada. There is a catch. The U.S. Commerce Department’s ruling has redefined crude in such a way that applies only to a form of ultralight oil which as it turns out American refineries are not really able to process. So it would have to be sent overseas to be refined.
The reason why it’s such a limiting rule is because anymore would have required a stamp of approval from Congress. Some members still favour the ban on exports believing it keeps the cost of gasoline down. According to Bloomberg, the Americans are ranked 51st in the world when it comes to high gas prices (Canada is 54th).
When it comes to producing oil, the United States is poised to overtake Saudi Arabia within a couple of years. That’s according to the International Energy Agency‘s estimates. It’s projected projected American crude oil output will peak at nearly 10 million barrels per day by within a year or two. That’s an increase of 3.5 million over 2013.
(source: The Washington Post)