American expert: lifting the U.S. ban on the export of oil has changed the energy market

American expert: lifting the U.S. ban on the export of oil has changed the energy market


WASHINGTON, January 6. /Corr. Dmitry Kirsanov/. Abolition in the United States ban on crude oil exports, in place for the past 40 years, radically transformed global energy market. This opinion was expressed, speaking Tuesday in Washington, the President of the American petroleum Institute Jack Gerard.

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According to him, the rejection of long-standing embargo on the supply of crude oil abroad and boom in hydrocarbon production in the USA means that this country “has come as a major player” in the global energy market. “The geopolitics of energy will never be the same”, – said the American expert.

From his point of view, the absence in the latter days of rising fuel prices, despite the acute crisis in relations between Iran and Saudi Arabia, a major oil-producing countries, due to the influence of energy markets adopted in the U.S. in December, act authorizing to resume the export of “black gold”. The presence of this law is already changing the dynamics of the world oil industry, says Gerard. In his opinion, 10 years ago if the middle East situation such as the current tensions between Tehran and Riyadh, “there would be a sharp jump of the prices for oil”.

Gerard also criticized the decision by the American administration to refuse to issue a permit for the construction of the Keystone XL oil pipeline from Canada to the USA. This step was Washington’s “political ideology” and not economic or other considerations, says Gerard. His Institute is a key lobbying organisation, the American petroleum industry.

U.S. President Barack Obama, despite objections, was signed at the end of last year Congress passed a bill that included lifting the ban on oil exports. A ban on the supply of crude oil from the US abroad, in the form of a Federal law operated since 1975. This legal act was prepared after the establishment of the Arab States embargo on oil supplies to Western countries in 1973. However, American firms are free to supply to other countries coal and petroleum products, including gasoline. In 2014, the EU openly acknowledged that Brussels is seeking from Washington in the framework of the transatlantic free trade area start exporting oil and gas to Europe.

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Experts: the lifting of the ban on oil exports from the U.S. will moderately affect the prices