US Step Closer toward Lifting of Crude Oil Exports Ban

The United States has made another step toward easing of its ban on crude exports with the approval of a swap deal with Mexico.

The US Congress was told on Friday by the Commerce Department that the deal that will see heavy oil pumped in Mexico exchanged for light crude pumped in the US would be okayed, the Wall Street Journal writes citing sources familiar with the matter.

Mexico’s state run oil major Pemex had asked to import about 100,000 barrels of light crude a day last year, however; it has not been disclosed whether the said volume has been approved.

As explained, the deal is not dependent on an approval from the US Congress as it is not seen as purely export deal since it underlies a swap of goods in which the US would get oil in return for crude.

The move comes in the wake of another push toward lifting of the ban, as the U.S. Senate Energy Committee passed a bill aimed at lifting the ban on exporting domestic crude oil production at the end of July.

The bill, championed by U.S. Sen. Lisa Murkowski, R-Alaska, is headed for the Senate floor after the August break.

The bill contains provisions aimed at unlocking crude oil exports and further facilitating exports of liquefied natural gas (LNG).

However, environmentalist groups have voiced their opposition to the lifting of the ban as they believe the move would result in further intensification of drilling activities off the US coasts increasing the risks of environmental pollution.

World Maritime News Staff