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In the News: A Weekly Roundup of Essential Reading on Oil Exports
Each week, www.OilExports.com features a roundup of the must-read stories regarding the oil industry and developments surrounding the export ban.
- This Week In Energy: How Badly Has OPEC Bungled? OilPrice.com. Congress is growing closer to lifting a ban, with a hearing set for December 11 in the House. Russia needs high oil prices to stay financially stable, especially with economic troubles and political sanctions costing well over $100 billion a year. The shift in production power to the U.S., allied with the likes of Canada, Mexico and Brazil, has exposed the deep divisions between OPEC members that were once papered over in the name of joint economic prosperity. If the shale boom truly makes the U.S. energy independent and the oil export ban is lifted, certain OPEC members may shift their allegiance.
- U.S. House to hold hearing on oil export ban. Reuters. The debate over whether Washington should lift its nearly 40-year crude oil export ban will come sharply into focus in January, when Republicans take over leadership of both the House and Senate. Oil exports champion Senator Lisa Murkowski will take over as chairman of the Senate energy committee. In the House equivalent, Chairman Fred Upton – who will retain the gavel – has said he has not yet made up his mind on the exports question, but senior committee member Congressman Joe Barton has voiced his support for lifting the ban. Meanwhile, a House of Representatives panel will hold a hearing on Dec. 11 to explore whether the export of crude oil makes sense in an era of domestic energy abundance.
- Saudis Risk Playing With Fire: The Telegraph. Saudi Arabia and the core OPEC states are taking an immense political gamble by letting crude oil prices crash to $66 a barrel, if their aim is to shake out the weakest shale producers in the US.
- US energy is growing, and so is US ‘power’. CNBC. Daniel Yergin expects the U.S. to lift its ban on exports of crude oil. The industry has argued that if it does not gain the ability to export, it will limit development of fields, reducing the amount of oil the U.S. can produce and ultimately making it more expensive. “The striking thing is, it’s still early days, and people are finding ways to be much more efficient. We’re moving into a period of ‘super fracks.’ This technology has really advanced a lot from where it was four years ago, and it will continue to really be innovated so even if it flattens out, our production has really increased,” said Yergin.