U.S. government approves crude oil swaps with Mexico while Congress considers

But Republicans have said those days are long gone, arguing that lifting the ban could make the U.S.an energy superpower and boost the economy, while simultaneously decreasing OPEC’s influence on the market. For consumers, study after studyprojects that exporting domestic crude would put downward pressure on U.S. gasoline prices, ranging from 1.7 cents up to 12 cents per gallon.

The U.S. exports will most likely be lighter shale crude that requires less refining and is expected to help Mexico’s aging downstream faculties produce more premium fuels.

U.S.-traded oil is said to have closed at just above $42 a barrel Friday, as global oil prices reportedly remain about $6 above the price of U.S. crude.

With a free-trade deal with the United States, York said the Mexican oil swap deal might open doors for other trading partners. It’s inefficient and time-consuming, working against the competitiveness of American energy in the world marketplace while watering down the benefits that could accrue to the United States from the free flow of trade.

There is no ban on exporting refined products such as diesel and gasoline.

BIS also has the authority to approve export licenses for swap transactions, particularly with adjacent countries, that are “consistent with the national interest and the objective of the Energy Policy and Conservation Act”.

More to the point, neither party wants to be accused down the line, as oil prices inevitably recover, of being responsible for reduced domestic supply as the cause of higher prices. Which according to reports is now history – at least when it comes to one of America’s closest neighbors.

Until the export ban is lifted, the U.S. will be at a competitive disadvantage when measured against other energy-supplying nations, and we will continue to miss the full trade benefits associated with the American energy revolution. As discussed previously, the legal framework, which is primarily codified in BIS’s Export Administration Regulations (EAR), has multiple exceptions that allow for licensed exports of crude oil in certain narrow circumstances, such as exports to Canada. By lifting our own self-imposed sanctions, we can give U.S. producers the same access to global markets and protect America’s competitive edge.

“While this decision by the Department of Commerce is an important first step, it is also a reminder of the urgent need to fully repeal the outdated ban on crude oil exports once and for all”, said U.S. Rep. Steve Scalise, R-Metairie, who represents southern portions of Lafourche and Terrebonne parishes. Our more than 500 corporate members, from the largest major oil company to the smallest of independents, come from all segments of the industry.