US Oil Embargo Lifted- Is It A Big Deal
The lifting of the oil embargo is the Silver lining, which will encourage the Shale oil drillers to continue pumping at rock bottom prices. The possibility of better times in the future will encourage them to cut costs and survive the current crisis.
There are a number of questions associated with the lifting of the ban, who will benefit from this? Will gasoline prices rise at the pump? Who will buy from the US when there is so much of supply glut in the world? Read on to know the answers related to this news.
The US will be the principal beneficiary of this new legislation
The Shale oil boom has made the US among the top two producers of oil in the world, it has tilted the balance away from the OPEC nations regarding oil pricing, the oil sector has provided employment to thousands of workers, and much more. But, the recent drop in oil prices to depressed levels of $30/barrel is …show more content…
With only a few refineries equipped to handle the light sweet oil, the advantage is unevenly tilted towards the refiners, the ability to exports will level the competition. Whenever crude oil prices go up, expansion projects will be taken up to fulfill excess demand. This will strengthen the domestic crude oil industry.
The US foreign policy will strengthen
Helima Croft, global head of commodities strategy at RBC Capital Markets, who has also worked as a senior economic analyst at the Central Intelligence Agency told CNBC, “After 9/11, we were very concerned in the US government with access to energy in places like Nigeria, because we never thought we’d have US production. So we can have a different foreign policy relationship with these governments than we might have had, because we have this abundant resource in U.S.”
Which are the probable markets for the
The lifting of the oil embargo is the Silver lining, which will encourage the Shale oil drillers to continue pumping at rock bottom prices. The possibility of better times in the future will encourage them to cut costs and survive the current crisis.
There are a number of questions associated with the lifting of the ban, who will benefit from this? Will gasoline prices rise at the pump? Who will buy from the US when there is so much of supply glut in the world? Read on to know the answers related to this news.
The US will be the principal beneficiary of this new legislation
The Shale oil boom has made the US among the top two producers of oil in the world, it has tilted the balance away from the OPEC nations regarding oil pricing, the oil sector has provided employment to thousands of workers, and much more. But, the recent drop in oil prices to depressed levels of $30/barrel is …show more content…
With only a few refineries equipped to handle the light sweet oil, the advantage is unevenly tilted towards the refiners, the ability to exports will level the competition. Whenever crude oil prices go up, expansion projects will be taken up to fulfill excess demand. This will strengthen the domestic crude oil industry.
The US foreign policy will strengthen
Helima Croft, global head of commodities strategy at RBC Capital Markets, who has also worked as a senior economic analyst at the Central Intelligence Agency told CNBC, “After 9/11, we were very concerned in the US government with access to energy in places like Nigeria, because we never thought we’d have US production. So we can have a different foreign policy relationship with these governments than we might have had, because we have this abundant resource in U.S.”
Which are the probable markets for the