The worldwide ban on most crude oil export by the United States was imposed in 1975. It was implemented at the time of the Oil Crisis to avoid a large-scale defeat of the oil market. Since then, it has been lifted once again, in December of 2021. In doing so, it was able to increase its domestic production and reduce its dependence on imports.
In doing so, the United States economy benefited greatly. In addition, this relaxation of export guarantees also encouraged other countries to develop their oil resources. For example, Norway, Algeria, and Vietnam are now exporting large volumes of gas. According to the finance ministry, the ban on oil export will lead to a $5.2 billion fall in the value of the dollar. However, analysts believe that this is only temporary, and the government should take measures to prevent a global decline in petroleum export.
Some say that the recent relaxation of export guarantees has created a vacuum in the oil market. However, they are not aware that this vacuum will only be temporary. It is expected that prices will increase again as the United States government starts to lift its export restrictions. The only thing preventing the United States from lifting its ban on oil is internal politics. The current administration, which came into power after a highly controversial election where no single party gained an absolute mandate, is keen on diversifying its energy sources.
This is why the US is not keen on banning oil exploration. Moreover, geologists find helium trapped inside American crude oil stored in the Powder Springs and Redstone area. This trapped oil could yield large profits for the company exploration. Therefore, geologists believe that there is still a lot of possibilities to find more American crude oil in the future. This would push up the price of oil even further.
Some oil analysts think that the reasons why the United States government eased its export restrictions on natural gas is because it wants to encourage more domestic oil production. In fact, during the last presidential campaign, Obama promised to bring down the cost of gas by $2.00 per gallon within a few years. However, many wonder whether this would actually work as it would just result in more production for domestic use. Some also point out that the domestic market in the US is currently glutted with oil and there is no sign of it getting better anytime soon. This is why export American crude oil will not help the situation.
Some people have already begun to take advantage of the low prices of American crude oil. They have started investing in oil wells all over the country just so they can make money from the gas that comes out of it. Others are making money through leasing drilling rights for exploration purposes. Energy independence is something that every nation should strive for, but it might not be an easy goal to achieve given our current energy crisis. With the shale revolution fracking for oil may become a reality one day.