28 Mar 2014 More
Senator Advocates Crude Oil Exports as a Weapon for Goodposted by Brown Books @ 09:25 0 Comments
According to Senator Lisa Murkowski of
not only would exporting crude oil make good economic sense for the United
States, it could be a strategic weapon for
the benefit of the world. With the US
as one of the world’s top US
oil exporters, it could conceivably change the fabric of the world.
Murkowski went on to say that American oil and gas production “needs to go into the political calculation.”
US oil production and world politics
The price for a barrel of crude moved up by $2 on concerns that the crisis in the
could lead to military intervention by Russia. That could cause disruptions not just in the
world crude oil supply but natural gas as well.
Entrance by the
into the world market could help to stabilize prices amid the chaos. Further domestic production here in the US
could also help to curtail fears over supply as well.
“We’ve got a cushion now because of what we are producing,” Murkowski went on to say. “It allows for a level of stability worldwide that we simply would not have had otherwise.”
”If this was a situation where we wanted to use our natural gas opportunities as political leverage, we’re not in that place now,” concluded Murkowski.
Current policy changes
The Department of Energy has already approved six new licenses to export LNG to nations which are not currently free-trade partners with the
US. The problem is that they must still be
approved by the Federal Energy Regulatory Commission. On top of that, new facilities for moving the
gas would take years to build.
“The Commerce Department’s Bureau of Industry and Security should, in my view, thoughtfully and deliberately amend its short supply controls to permit the export of condensate,” said Murkowski.
Murkowski is pressing the Obama Administration to take action, although the consensus is that this being an election year, no action will be taken anytime soon.
In the meantime, the senator says that she will also ask the EIA to work on economic analysis showing the advantages of allowing the
to export more oil. Similar requests
have also been made by Senator Ron Wyden of Oregon
and Maria Cantwell of Washington.
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