A major energy company will soon sell U.S. oil abroad without explicit permission from the government, another sign that the decades-old federal ban on crude exports is crumbling. As The Wall Street Journal reports, BHP Billiton’s deal to sell about $50 million of ultralight oil from Texas to foreign buyers without formal government approval is likely to be only the first of many such moves as energy companies seek new markets and higher prices for the surge of crude now pumped in the U.S.
Washington has been sharply divided over whether to allow U.S. oil exports, which have been restricted since the Arab oil embargo in the 1970s. Big oil companies, including Exxon Mobil Corp., have called for an end to the ban, saying that overseas sales would create U.S. jobs and improve the balance of trade.
But opponents have said they fear that exports would cause gasoline prices to rise in the U.S., hurting consumers and angering voters.
The new overseas sale is likely to ratchet up the pressure on the Obama administration and Congress to address export policy soon. U.S. energy producers are planning to lobby hard on the issue in coming months, while refiners and chemical companies, which benefit from abundant, low-cost U.S. oil, are pushing back.
BHP announced Tuesday that it had signed an agreement to sell 650,000 barrels of oil that hasn’t gone through the traditional refining process that turns oil into gasoline and other fuels. Big Swiss trading firm Vitol SA is buying the ultralight oil, known as condensate, a person familiar with the situation tells the newspaper. Read the full story (subscription may be required).
