Ease On Oil Restrictions Could See Exports On the Rise
Since the 1970’s, the US has banned exports of crude oil but the country has now granted permission to two companies to export oil once it has been lightly processed.
Not exactly a change in policy from the Commerce Department, this is however a significant ease on restrictions which could see a rise in American oil exports. A tasty prospect, not only for those in the oil sector, but for the economy as a whole.
The United States has long been a producer of oil but has, for the most part, kept sales within the country so as to maintain low prices on the domestic markets. However, rising oil production and a shale oil boom has meant that the US government are now looking to capitalise on this and so have allowed for these initial exports to happen.
The US government still refuses the export of unrefined crude oil however; oil that undergoes any sort of process to become a petroleum product is no longer subject to these restrictions. The latest products to have been granted export status have been subject to minimal processing and are being shipped to foreign buyers as ‘ultra-light oil.’
This move could open the floodgates for American oil exports as other oil producers may well take similar steps to ensure that their product also ends up on the international market. This could provide incentive for further growth within the American energy sector with even more money being brought in and possible expansion allowing for the opportunity of jobs.
With America currently rising out of the global economic crisis of 2008 and once again establishing itself as an economic super power, now may be the time for confident business people or the savvy investor to make the most of a growing economy and cheap labour.