http://www.bloomberg.com/politics/a...iscal-deal-that-ends-u-s-crude-oil-export-ban The stopgap fiscal bill to prevent a US government shutdown includes a provision to finally end the 40-year ban on exporting oil. The path seems clear to get the bill sign by week's end. Let's hope this places a floor for oil prices to move up from and help those oil drillers and states strapped by low oil prices.
I love the low oil prices and the low price of gas is a great boon to my personal economy. I hope the price of oil doesn't go up any time soon. I am making hay while the sun shires! I think most of the US agrees with me.
Ridiculously low oil and gasoline prices are not necessarily the most wonderful thing for the USA. States dependant upon oil producers for tax revenue are facing revenue declines and rising unemployment, placing pressure on state budgets and affecting tax payers in those states. The financial stress eventually dribbles down to the federal level (think national debt and taxpayers). Most other oil producing countries, including some within OPEC, face similar financial pressures. All this turmoil could have avoided if OPEC and other oil producing countries could have agreed to production quotas. In the meanwhile, land storage facilities are full and some tankers are serving as floating storage. Do your due diligence on those firms and put some of your "hay" to work in making money. After all, you are this appropriately named web site.
This is a pretty dire sign for the government's financial situation if they're looking to begin exporting at a time of record low oil prices. Economics 101 would tell you that now would be the time to import more and increase production in the petro-chemical industries. But there might be a hidden variable that the government knows and we don't which might mitigate against such action. Will be interesting to see how an influx of American oil into the market affects the price in future.
Anything that removes barriors to trade is a good thing. I do think this amendment is really just a red herring though. There is not much reason for exporting when the highest demand is here. It may pschologically increase oil prices, but overall I don´t think there were many companies actually planning on doing it.
Agreed. And if I went through all of the hassles, risks, and expense to find oil and get it out of the ground and to market, I'd sure as hell want to be able to sell it to other nations if my own country wasn't buying it all from me, or wasn't willing to give me a fair price or otherwise be fair with me.
