U.S. Ruling Loosens Four-Decade Ban on Oil Exports

[Joey Skylynx]

[quote][t]http://si.wsj.net/public/resources/images/P1-BQ540_OILEXP_NS_20140624190010.jpg[/t]
The Obama administration cleared the way for the first exports of unrefined American oil in nearly four decades, allowing energy companies to start chipping away at the longtime ban on selling U.S. oil abroad.

In separate rulings that haven't been announced, the Commerce Department gave Pioneer Natural Resources Co. and Enterprise Products Partners LP permission to ship a type of ultralight oil known as condensate to foreign buyers. The buyers could turn the oil into gasoline, jet fuel and diesel.

The shipments could begin as soon as August and are likely to be small, people familiar with the matter said. It isn't clear how much oil the two companies are allowed to export under the rulings, which were issued since the start of this year. The Commerce Department's Bureau of Industry and Security approved the moves using a process known as a private ruling.

For now, the rulings apply narrowly to the two companies, which said they sought permission to export processed condensate from south Texas' Eagle Ford Shale formation. The government's approval is likely to encourage similar requests from other companies, and the Commerce Department is working on industrywide guidelines that could make it even easier for companies to sell U.S. oil abroad.
In a statement Tuesday night, the Commerce Department said there has been "no change in policy on crude oil exports."
Under rules imposed after the Arab oil embargo of the 1970s, U.S. companies can export refined fuel such as gasoline and diesel but not oil itself except in limited circumstances that require a special license. The embargo essentially excludes Canada, where U.S. oil can flow with a special permit.
Lawmakers enacted the ban after Arab countries declared an embargo on shipments to Western nations because of their support for Israel in the Yom Kippur War. The embargo caused oil prices to quadruple and led to rationing at gas stations across the U.S.
But as drilling companies tap shale formations across the U.S., so much oil is flooding out of the ground that prices for ultralight oil have fallen as much as $10 or more below the price of traditional crude. As a result, producers have lobbied aggressively to relax the export ban, saying they could get a higher price from foreign buyers than from U.S. refiners.[/quote]
[url=http://online.wsj.com/articles/u-s-ruling-would-allow-first-shipments-of-unrefined-oil-overseas-1403644494]Washington State Journal[/url]
MANIFEST, MANIFEST, MANIFEST, MANIFEST!
[media]http://www.youtube.com/watch?v=Fo8Xpf88jnM[/media]
Our exports are heading to asian countries like Japan and Vietnam first supposedly, but it's pretty awesome to know that we are back to selling oil outside of our own borders.

[Jodern]

[QUOTE=ilikecorn;45215013]No. Ban importation of oil, use our own domestic supplies, enjoy even cheaper gas, eliminate the bullshit hikes in energy prices when bakalakadakastan starts killing its own dudes.[/QUOTE]

Doesn't American have ridiculously cheap gas already?

[JohnFisher89]

[QUOTE=ilikecorn;45215013]No. Ban importation of oil, use our own domestic supplies, enjoy even cheaper gas, eliminate the bullshit hikes in energy prices when bakalakadakastan starts killing its own dudes.[/QUOTE]

But we get most of our oil from canada.....

[editline]26th June 2014[/editline]

[QUOTE=Jodern;45215026]Doesn't American have ridiculously cheap gas already?[/QUOTE]

if $3.50 a gallon is considered "cheap" than yeah

[JohnFisher89]

[QUOTE=ilikecorn;45215040]But we can get it from ourselves and support local industry, and energy "security".[/QUOTE]

To do that you'd basically have to say "no global businesses can sell gas in america" which won't ever happen.

[JennyC6]

[QUOTE=Jodern;45215026]Doesn't American have ridiculously cheap gas already?[/QUOTE]

Cheap enough to enjoy fun cars and not be stuck to 1 liter shitboxes, but it'd still be great if we could see it back under $2/gal.

[Jodern]

[QUOTE=JohnFisher89;45215030]

if $3.50 a gallon is considered "cheap" than yeah[/QUOTE]

Holy crap, it's $9.60 a gallon here

[darunner]

[QUOTE=ilikecorn;45215013]No. Ban importation of oil, use our own domestic supplies, enjoy even cheaper gas, eliminate the bullshit hikes in energy prices when bakalakadakastan starts killing its own dudes.[/QUOTE]

The trick is you use the other guy's supplies until they dry up, and only then do you crack open your reserves...

[Sally]

[QUOTE=ilikecorn;45215013]No. Ban importation of oil, use our own domestic supplies, enjoy even cheaper gas, eliminate the bullshit hikes in energy prices when bakalakadakastan starts killing its own dudes.[/QUOTE]

Not sure if I posted this before, but the main idea is to use the resources of other countries until its gone then use our own.

Its somewhat a backup for when shit hits the fan

[FreakyMe]

[QUOTE=ilikecorn;45215049]Its "cheap" until you realize that we have a huge ass country with "meh" teir MPG cars, and shitty infrastructure, leaving very little room to use public transportation.
[/QUOTE]

It's even worse when you account for all of the low mpg vehicles being needlessly driven and using a disproportionate amount of gas to drive an individual person from point A to B, driving up prices for everyone else. Road design and traffic systems are abysmal, making a large part of your fuel expenditure occur while your vehicle is at a standstill. Driving 7 miles across my city can take 20-50 minutes when traffic is bad. Public transit ranges from city to city but mostly is largely lacking except in major and capital cities, and cities are huge and sprawling, with no dedicated pathways for pedestrians or bicyclists except alongside high-speed traffic with dozens to hundreds of vehicles passing every few minutes.

Vehicles own the city, and it is built only for those who can afford them.

[JohnFisher89]

[QUOTE=Jodern;45215071]Holy crap, it's $9.60 a gallon here[/QUOTE]

yeah but we drive like 3 times the distance to work and places unlike you all

[Antdawg]

[QUOTE=ilikecorn;45215013]No. Ban importation of oil, use our own domestic supplies, enjoy even cheaper gas, eliminate the bullshit hikes in energy prices when bakalakadakastan starts killing its own dudes.[/QUOTE]

If your domestic supplies are cheaper and available in sufficient volume as you claim they are, then why does the US import oil? Why would you ban importing oil for any reason other than protecting local companies from more-competitive foreign suppliers? Your argument makes no sense.

[Sio]

[QUOTE=JohnFisher89;45215168]yeah but we drive like 3 times the distance to work and places unlike you all[/QUOTE]

Just because one country is bigger than the other doesn't mean you drive further distances, it just means you can drive a further distance before hitting the ocean/another country.

[Antdawg]

[QUOTE=JohnFisher89;45215168]yeah but we drive like 3 times the distance to work and places unlike you all[/QUOTE]

If you lived in a city or town in the US, you'd probably drive the same distance to work as someone in a Scandinavian country who also lived in a city or town would drive to his or her workplace.

[JohnFisher89]

[QUOTE=Sio;45215233]Just because one country is bigger than the other doesn't mean you drive further distances, it just means you can drive a further distance before hitting the ocean/another country.[/QUOTE]

[QUOTE=Antdawg;45215261]If you lived in a city or town in the US, you'd probably drive the same distance to work as someone in a Scandinavian country who also lived in a city or town would drive to his or her workplace.[/QUOTE]

[URL]http://www.usatoday.com/story/news/nation/2013/03/05/americans-commutes-not-getting-longer/1963409/[/URL]

[URL]http://www.telegraph.co.uk/news/uknews/road-and-rail-transport/10724224/Workers-commuting-further-than-ever-before.html[/URL]

yeah we travel about 3 times longer to work on a national average..

[assassin_Raptor]

[QUOTE=ilikecorn;45215087]Or just do it now and not wait the 100ish years to wait for the guy's reserves to dry up.[/QUOTE]

But if we do that then we can export our oil for massive profits.

[Antdawg]

[QUOTE=JohnFisher89;45215355][URL]http://www.usatoday.com/story/news/nation/2013/03/05/americans-commutes-not-getting-longer/1963409/[/URL]

[URL]http://www.telegraph.co.uk/news/uknews/road-and-rail-transport/10724224/Workers-commuting-further-than-ever-before.html[/URL]

yeah we travel about 3 times longer to work on a national average..[/QUOTE]

Not comparable. One source says those in the UK travel 15km, on average, to get to work. The other source says those in the US, on average, have to commute for 25.5 minutes. You can't compare time and distance.

[PolarEventide]

[QUOTE=ilikecorn;45215013]No. Ban importation of oil, use our own domestic supplies, enjoy even cheaper gas, eliminate the bullshit hikes in energy prices when bakalakadakastan starts killing its own dudes.[/QUOTE]

Did you read the article? This ruling has nothing to do with importing oil. It allows for US companies to [b]export[/b] oil to foreign buyers.

[editline]25th June 2014[/editline]

[QUOTE=Jodern;45215026]Doesn't American have ridiculously cheap gas already?[/QUOTE]
Yes, but that's coupled with a lower minimum wage and, on average, longer commutes.

[Used Car Salesm]

It is incredibly shortsighted to blow our newfound oil reserves on exporting to other countries for the enrichment of a select few wealthy people.

[Sientanse]

[QUOTE=Antdawg;45215422]Not comparable. One source says those in the UK travel 15km, on average, to get to work. The other source says those in the US, on average, have to commute for 25.5 minutes. You can't compare time and distance.[/QUOTE]

While anecdotal, to get to school each day, I have to drive roughly 30 minutes, at an average speed of roughly 50mph (45mph in city, 60mph highway) that is about 25 miles, or 40 kilometers.

[Antdawg]

[QUOTE=Reviized;45215554]While anecdotal, to get to school each day, I have to drive roughly 30 minutes, at an average speed of roughly 50mph (45mph in city, 60mph highway) that is about 25 miles, or 40 kilometres.[/QUOTE]

Not only anecdotal but also irrelevant because those two articles only talk about commuting to work, not to school or anything else.

[JohnFisher89]

[QUOTE=Antdawg;45215422]Not comparable. One source says those in the UK travel 15km, on average, to get to work. The other source says those in the US, on average, have to commute for 25.5 minutes. You can't compare time and distance.[/QUOTE]

It's a national average, it's taking into account the people in bumfuck texas, and the people in NY who walk. It's an AVERAGE for a reason.

[PolarEventide]

[QUOTE=Antdawg;45215422]Not comparable. One source says those in the UK travel 15km, on average, to get to work. The other source says those in the US, on average, have to commute for 25.5 minutes. You can't compare time and distance.[/QUOTE]
[url]http://www.statisticbrain.com/commute-statistics/[/url]

These statistics show that 50% of Americans have a commute of 11 miles or more one-way. (33% have a commute of 16 miles or more one-way).

[url]http://news.bbc.co.uk/2/hi/uk_news/3085647.stm[/url]

According to BBC, the average one-way commute distance in Britain is 8.5 miles, and BBC claims that this is the longest average commute of EU nations.

Therefore, the average American has a longer commute. In fact, a third of Americans have a commute that is double or more of the average commute distance in Britain.

[JohnFisher89]

[QUOTE=PolarEventide;45215633][URL]http://www.statisticbrain.com/commute-statistics/[/URL]

These statistics show that 50% of Americans have a commute of 11 miles or more one-way. (33% have a commute of 16 miles or more one-way).

[URL]http://news.bbc.co.uk/2/hi/uk_news/3085647.stm[/URL]

According to BBC, the average one-way commute distance in Britain is 8.5 miles, and BBC claims that this is the longest average commute of EU nations.

Therefore, the average American has a longer commute. In fact, a third of Americans have a commute that is double or more of the average commute distance in Britain.[/QUOTE]

Your BBC article was published over 10 years ago....

However, this article was published 3 months ago [url]http://www.telegraph.co.uk/news/uknews/road-and-rail-transport/10724224/Workers-commuting-further-than-ever-before.html[/url]

[CMX]

Why cant we get a thread that mentions gas/oil not devolve into "MY GAS IS MORE EXPENSIVE I HAVE IT WORSE!"
Its about as bad as the internet speed tests

[🅱️🅰️LLS. ➿]

[QUOTE=JohnFisher89;45215030]
if $3.50 a gallon is considered "cheap" than yeah[/QUOTE]
You're paying under a dollar per litre of gas, that's pretty much a third less than in Australia and there are many countries which have it even more expensive.

[PolarEventide]

To give another sense of the difference here...
[url]http://www.bloomberg.com/visual-data/gas-prices/[/url]

According to Bloomberg, while the US's average gas price ($3.69/gallon) is only the 51st highest in the world, the average percentage of income spent on gas in the US (2.99%) is the 9th highest in the world.

On the other hand, Norway has the highest average gas price at $9.79/gallon. The average Norwegian, however, only spends 0.86% of their income on gasoline, which is 51st in the world.

These statistics prove that the average American has a greater "pain at the pump" than the average Norwegian.

[editline]25th June 2014[/editline]

[QUOTE=Badballer;45215686]You're paying under a dollar per litre of gas, that's pretty much a third less than in Australia and there are many countries which have it even more expensive.[/QUOTE]
While gas prices are higher in Australia ($5.27/gallon), the average Australian spends 1.89% of their income on gasoline, as opposed to the average American who spends 2.99% of their income on gasoline.

tl;dr [b]Simply comparing the average gas prices in different areas does not accurately show the differences in what is [i]actually[/i] paid at the pump.[/b]

[Antdawg]

[QUOTE=PolarEventide;45215633][url]http://www.statisticbrain.com/commute-statistics/[/url]

These statistics show that 50% of Americans have a commute of 11 miles or more one-way. (33% have a commute of 16 miles or more one-way).

[url]http://news.bbc.co.uk/2/hi/uk_news/3085647.stm[/url]

According to BBC, the average one-way commute distance in Britain is 8.5 miles, and BBC claims that this is the longest average commute of EU nations.

Therefore, the average American has a longer commute. In fact, a third of Americans have a commute that is double or more of the average commute distance in Britain.[/QUOTE]

I hate to be picky, but now you're comparing a median for the US to a mean for the UK. The difference is that one figure is influenced by outliers and one isn't. But I get your point. Even if the difference between the UK's mean of 15km (from the more-recent article in the post below yours) and the US median of 17.6km is only a 2.6km difference.

[laserguided]

you guys are dumb, I commute 25km a day and it costs $1.65 a litre for 91. That is like $6 US/gal

[PolarEventide]

[QUOTE=laserguided;45216004]you guys are dumb, I commute 25km a day and it costs $1.65 a litre for 91. That is like $6 US/gal[/QUOTE]
For one, that is anecdotal, but it is also irrelevant because, as I already explained, comparing gas prices in one country to gas prices in another doesn't accurately demonstrate pain at the pump, because in some countries the average driver spends a larger percentage of their income on gas than average drivers in other countries..

In Canada, however, that percentage of income is larger than that of the US.

Canadians pay, on average, $4.50/gal (45th highest in the world) and spend 3.07% of their income on gasoline (7th highest in the world).

Americans pay, on average, $3.69/gal (51st highest in the world) and spend 2.99% of their income on gasoline (9th highest in the world).

[laserguided]

[QUOTE=PolarEventide;45216132]For one, that is anecdotal, but it is also irrelevant because, as I already explained, comparing gas prices in one country to gas prices in another doesn't accurately demonstrate pain at the pump, because in some countries the average driver spends a larger percentage of their income on gas than average drivers in other countries..

In Canada, however, that percentage of income is larger than that of the US.

Canadians pay, on average, $4.50/gal (45th highest in the world) and spend 3.07% of their income on gasoline (7th highest in the world).

Americans pay, on average, $3.69/gal (51st highest in the world) and spend 2.99% of their income on gasoline (9th highest in the world).[/QUOTE]

I'd say pain at the pump is pretty big here, more so than the U.S. We have more tax too.