U.S. Oil Exports Hit Record Levels

2 Mar 2017   exports

The bill contained an important provision for oil producers that read “to promote the efficient exploration, production, storage, supply, marketing, pricing, and regulation of energy resources, including fossil fuels, no official of the Federal Government shall impose or enforce any restriction on the export of crude oil.” This provision ended a crude oil export ban dating back to 1975. Despite the huge surge in U.S. shale oil production since 2008, crude oil producers had to sell their product to U.S. refiners, who were free to sell refined products on the world market. Even though the U.S. was (and remains) a net importer of crude oil, the longtime premium on West Texas Intermediate (WTI) over internationally traded Brent crude vanished in response to the shale boom. Meanwhile, refiners were exporting finished products that were more representative of Brent crude pricing. Refiners loved this arraignment, and lobbied to keep the ban […]

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