Posted on 12/16/2015 9:43:54 AM PST by Citizen Zed
NEW YORK (AP) - The U.S. could soon end restrictions on oil exports put in place in the mid-1970s. The lifting of the embargo is part of a spending deal expected to be pushed through the House and Senate by the end of the week. Here are the reasons why the ban was in place, why is it is now being lifted and how consumers and businesses will be affected.
GAS LINES
Of all the bad memories seared into the American consciousness from the 1970s, never-ending lines at the gas pump tops the list for many people. The Organization of Petroleum Exporting Countries put into place an oil embargo after the U.S. sided with Israel in the Yom Kippur War and the price of oil spiked from $3 to $12. A ban on oil exports was put in place in December 1975, with some exceptions. Companies were allowed to export oil to some countries with special approval, and exports to Canada have increased in recent years.
PRODUCTION REDUCTION
The country's oil supply problem was made more precarious when domestic production began a long decline in the 1970s as oil fields matured. Even with a temporary surge in production from Alaska in the 1980s, the U.S. was forced to rely more and more on imports. U.S. production, which had reached almost 10 million barrels per day in the early 1970s, was halved by 2008.
SO WHAT'S CHANGED?
Technology.
(Excerpt) Read more at cnsnews.com ...
Crude Exports-API President Jack Gerard-Media Bias with Climate News
https://soundcloud.com/jacki-daily/media-bias-with-climate-news
Crude Oil Exports 8/2/2015
https://soundcloud.com/jacki-daily/crude-oil-exports-822015
“SO WHAT’S CHANGED?
Technology.”
What’s changed is Buffett backing Clinton for President. He’s betting she will continue Obama’s anti-pipeline stance and leave Buffett open to monopolize transport.
Just what you’ve been advocating.
Trying to put the transportation of crude and refined petroleum back into the choked and inefficient means of transportation that is rail tank cars, when a much faster, safer, and more reliable form of transport like pipelines exist and are a PROVEN method, is rather like trying to get rid of automobiles and restoring horse-drawn vehicles as means of transport.
Why was the ban put on the export of US crude oil in the first place? This was something to do with the mania for “price-fixing” that was rampant with the dying expiration of the Nixon era and the really restrictive limitations being put on industry and business in the isolationist period after the end of the Viet Nam war, when America was in retreat all over the world, and with it, international capitalism.
If we are able to lift the restrictions we can supply Europe with Oil and more impotently Liquefied Natural Gas. This helps reign in Putin as it directly removes cash from his pocket and cuts into his power over Europe.
If we start exporting, it will only be a little bit of light sweet from the Gulf Coast region. Our net will still be importing ~7 million BPD. We won’t be making any real dent in Europe’s oil needs.
There will be an occasional shipment of other to meet upset conditions, but economics and our demand are not going to make us a net exporter. Not for a couple decades at least and only if high price continue.
And I shouldn’t even try to make multi-decade predictions.
But I didn’t want this part:
In return, they agreed to the demand from Democrats for a five-year extension of credits for wind and solar energy producers and a renewal of a land and water conservation fund.
This affects not just keystone profits, but all oil export profits!
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