Thursday, December 12, 2013
Exxon Mobil Wants To Export Oil
By 2015, energy companies will tap more oil in North America from dense layers of rock alone than the current output of members of the Organization of the Petroleum Exporting Countries except Saudi Arabia, Exxon projects. World-wide, companies will pump greater amounts of oil through 2040 and still leave nearly two-thirds of the earth's crude deposits untouched.
Exxon has long held that the same trade rules should apply to oil and gas as other products made in the U.S., and has said that North America was pumping enough oil and gas to become an exporter. But now the world's largest investor-owned energy company is explicitly calling for an end to America's effective ban on most crude exports.
The Center supports exporting American oil.
The primary laws prohibiting crude exports are the Mineral Leasing Act of 1920, the Energy Policy and Conservation Act of 1975, and the Export Administration Act of 1979. The so-called short supply controls in the Export Administration Regulations (EAR) of the Bureau of Industry and Security (BIS), an agency of the Department of Commerce, spell out these restrictions.
The ban was a response to the Arab oil embargoes. The restrictions on exports were borne, as was the Department of Energy and the Strategic Petroleum Reserve, on oil disruptions. Due to fracking and horizontal drilling, those restrictions no longer exist.