© AFP Photo / David Mcnew
The US Commerce Department has given the go-ahead to several companies to export crude oil, a big policy change essentially ending a ban in place for the last four decades.
At question is whether the end of the ban will mean higher prices at the pump.Ultra-light oil, often referred to as 'condensate' by the energy industry, will be cleared to be exported abroad, according to a private ruling by the federal government impacting Pioneer Natural Resources Co. and Enterprise Product Partners LP, The Wall Street Journal reported.
Currently, the export of crude oil is restricted by the US government, though the ban has not applied to refined versions such as gasoline and diesel. The restrictions were put into place during the 1970s as a direct result of the 1973 oil embargo imposed by a number of Arab nations. At the time, global oil prices were spiking upwards, and many Americans were struggling to simply fill their car's gas tank.
Exceptions to the crude ban - known officially as the 1975 Energy Policy and Conservation Act - have been made over the years, including for crude oil produced in Alaska's Cook Inlet, oil that travels through the Trans-Alaskan Pipeline, certain fields in California, and oil shipped to Canada for domestic consumption. Still, even after all of those exceptions, the amount of crude being exported by the US amounted to a modest 67,000 barrels per day in 2011, reported
the Washington Post.
Comment: "Sensationalist"? Maybe. Fascist? Most definitely.