U.S. Oil Exports
U.S. crude oil exports rose to 590,000 barrels per day in April, up 83,000 barrels from March reported by U.S. Census Bureau. Rigzone reports this is the highest level since 1920.
The largest buyers of the crude:
- Canada 324,000 bpd
- Curacao 90,000 bpd
- Bahamas 36,000 bpd
This comes just six months after the U.S. government lifted restrictions on crude exports.
The tireless lobbers against the ban- Chevron and Exxon Mobil- are the immediate beneficiaries of removing the ban. The oil trading companies Vitol BV and Trafirua, LTD also benefited.
Israel, China, Germany, France, and Switzerland have also placed to for American energy suppliers.
Conclusion…It seems the United States benefits when other democratic countries can purchase oil and gas that doesn’t support terrorist activities like we saw this week in Orlando. The shooter swore allegiance to the leader of ISIS, Abu Bakr al-Baghadadi, law enforcement told NBC news.
Foreign-bound oil is first since 40-year ban recently lifted.
ConocoPhilips Co. and NuStar Energy, LP loaded the tanker pumped from the Eagle Ford Shale of South Texas. Vitol Group, Dutch oil-trading company, is buying the oil according to NuStar.
The legislation lifting the 40-year ban was signed two weeks ago.
Whether lifting the ban will help or hurt oil pricing is to be seen. But, from a foreign policy point of view it seems that the United States should help its friends when they have a shortage of oil due to unforeseen tragedies. After all, when Hurricane Katrina hit the gulf coast and curtained oil production, the United States had to rely on foreign oil imports.
OPEC has used crude oil as a tool to hurt the United States during the 1973 Opec Oil Embargo. Why shouldn’t we use it as a tool to help those countries who support democracy and free enterprise?
There was one unanticipated country who apposed lifting of the crude oil export ban…that was Canada. They were counting on the Keystone Pipeline through the United States to create new markets for its crude oil from its oil sands. Well there is always someone unhappy with any political decision.