Governor Rick Perry of Texas recently stated that he wanted the United States to be able to export natural gas and oil without limitations. He and many others feel that lifting this ban on exports could help to strengthen the economy of the United States. He also feels that it has potential to help in a number of other areas as well.
First, it could help to ensure that many of the U.S. allies in Europe and other parts of the world would not have to depend on oil from Russia and the Middle East. This would help to reduce the amount of control that the Mid East and Russia have when it comes to oil in Europe. Perry went on to say that this would be the first order of business. He wants to “restore the balance in Europe.” Building an “energy shield,” meaning that Europe would not have to rely on these other nations for their energy, could reduce the power that Russia has there currently.
While certain companies can export to countries that the United States has free trade agreements with, Perry feels that lifting the ban entirely is a better option. Of course, being the Texas governor, he also knows that lifting the ban on exports certainly has the potential to help his state as well. He hopes to set a deadline for the President and his administration to approve or reject the oil pipeline, called the Keystone XL pipeline, which would bring in oil from Canada.
Many nations in Europe agree, and they have shown more than a bit of uneasiness when it comes to buying from Russia, mostly due to the annexation of Crimea, as well as the Ukraine conflict.
However, some others disagree with Perry about how to proceed. They feel that by opening up the exports, it would potentially cause the gas prices to rise in the United States. They feel that by keeping the oil production and the produced oil in the United States, it will help to keep the prices at the low point where they are right now. Of course, some believe that this would eventually push the prices of gas so low that production facilities would suffer, and it could actually cause lost jobs.
There is no easy answer as to what’s best, but it is important for oil companies, and the public, to keep watch over the changes that are coming down the “pipeline” so to speak.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks, Mud Systems, Rig Walking Systems, Power Generation, Control Systems, Iron Roughnecks and complete Rig Solutions built to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.