Oil Boom Shifts The Landscape Of Rural North Dakota

The issue of exporting US crude oil – essentially banned since the 1970’s energy crisis – is gaining steam, as US domestic oil production volumes increase to levels few thought possible just a few years ago. Amid this environment of surging incremental production, certain high-profile industry and high-ranking government officials soften to the idea of exporting domestically-produced barrels, though significant political opposition remains.

“Pro-industry heads of the Senate and House Energy committees are positively disposed to change. On balance, a change in the export restrictions is possible in 2014, but it will likely be done within the confines of current legislation and be targeted to specific instances where the executive branch can demonstrate that there is a lack of a market for a given hydrocarbon domestically, as in the case of lease condensate. Statutory provisions provide some flexibility. The Department of Commerce can grant licenses for certain exports, mostly to Canada. Regulations also allow the executive branch and the president to make new exceptions to the regulations as long as they can show the exception would be in the national interest and prove that the fuel cannot be reasonably marketed in the US.” – Barclay’s Commodity Research, Soaking up the crude: The outlook for US crude exports – Michael Cohen and Shiyang Wang