By BRADLEY OLSON and DAVID WETHE
The energy industry must do more to convince the American
public that US oil exports are needed from a country that
still imports 5 million bpd, Energy Secretary Ernest Moniz
I dont think the industry has done a very good
job of clearly and concisely stating the case, Moniz
said at the IHS CERAWeek conference in Houston this week.
US energy policies stemming from the 1973 Arab oil embargo
severely restrict crude exports while applying no such limits
to products that are processed in refineries. US refiners are
exporting record amounts of gasoline while producers contend
with depressed oil prices.
The US is estimated to have surpassed Russia and Saudi Arabia
last year as the worlds largest producer of oil and
natural gas, according to the Energy Information
Oil companies from Chevron to Total have lobbied in speeches
this week in Houston for an end to export limits. A failure
to do so will slow the growth in crude output, Senator Lisa
Murkowski, a Republican from Alaska, said on March 3.
New drilling techniques including directional drilling and
hydraulic fracturing in shale formations such as the Eagle
Ford and the Bakken in North Dakota helped US oil production
grow by a record 1.136 million bpd last year to 8.121 million
at year-end, according to the EIA. US oil cost an average of
$9/bbl less than Europe
an crude last year,
according to data compiled by Bloomberg
The department has received a total of 35 applications from
companies seeking to export natural gas and capture prices in
Asia that are five times higher than domestic rates. The
approvals so far would allow shipments of more than 9 billion
cubic feet of gas, according to the department.
Five of six proposals to export natural gas that the Energy
Department has tentatively approved are under review by the
Federal Energy Regulatory Commission, Moniz said. One other
has received a license.