This morning on CNBC’s Squawk Box, former New Mexico Governor and U.S. Energy Secretary Bill Richardson said the Federal Government should “go beyond the oil export swap with Mexico” and lift the ban on U.S. crude oil exports. Secretary Richardson joins a growing list of former cabinet and sub-cabinet officials from the Clinton and Obama Administrations calling for an end to the ban. Excerpted video and transcript below.
Former New Mexico Governor Bill Richardson:
New Mexico is like the entire oil patch, is starting to hurt. We’ve got shale, we’ve got oil and gas. Our budget our education depends a lot on oil and gas royalties. And we’re hurting, because right now, as you mentioned in your dialog, there is an oversupply.
And by the way, Iraq and Saudi Arabia are drilling more. China, their main customer, demand is substantially less.
This is why it does make sense to lift the oil export ban. It makes no sense. It’s a relic of the 70s and 80s.
Because this will allow us geopolitically to deal with the Russians in Eastern Europe – they use natural gas as a political weapon. If we have an export of oil there and the with our ally in Mexico that is having energy reform, I think there is a problem now.
This Iran oil is going to be out there probably late in the year. And what you’re going to have is oil prices, if they start going under $40, that’s going to hurt the U.S. economy.
But this Mexico move, means, I believe, countering the negative geopolitical trend that is happening.