We asked traders if the U.S. should lift the crude export ban

September 11, 2015 07:54 AM

Carl Larry @oiloutlooks

Funny thing, I was driving back to Houston from New Orleans this past weekend and all I could think about was the future of oil.

For everyone in Chicago that has ever taken a “crop tour,” you’d appreciate me pulling off the road in Beaumont to marvel at the refinery expansion project underway at Exxon Beaumont. If I were in California, I would have sworn it was Burning Man. The site was nothing short of a small city being built and an important statement regarding the future of America and oil.

When asked if America should lift the ban on crude oil exports, we have to remember why it was there in the first place: supply and demand. America was in dire need of supply and our demand was growing quickly. Here in 2015, we have set records for oil demand for the U.S. refining system averaging over 16mm b/d and if we adjusted the gasoline demand numbers to the higher fuel efficiency, we’ve never used as much. All of that and a bag of chips and we also managed to set record levels for crude inventories. It’s not that we should lift the ban on crude oil exports, we need to lift the ban on exports.

We’re a country that prides itself on free markets and it only makes sense to bring oil in the fold. It will bring in more money for American oil producers to advance our technology, put us in a better position to be the suppliers and not the consumers and command respect around the world as the leader in all things financial and commodity wise. This is about creating a country that not just makes oil, but one that makes money on oil.

Carl Larry is a director and business development consultant for oil and gas at Frost & Sullivan. He provides daily oil market guesstimates with a dose of pop culture.

Image via flickr

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