Why Doesn’t the United States Export More Oil?
America’s energy boom is spurring a clash between the realms of politics and economics. Meaningful exports of oil have been banned for almost a century. But with output surging and crude fetching a 20 percent discount at home, producers want to ship it overseas. BP, Royal Dutch Shell and four others have applied for limited licenses to do just that. Unblocking trade could benefit everyone.
The 1920 Mineral Leasing Act allows producers to sell only tiny amounts of black gold abroad. Even shipments to Canada require a special license – BP has just secured one. At present America exports just 47,000 barrels a day, against imports of over 8 million barrels. Yet production has shot up 32 percent since 2008.
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