Steve Forbes recently wrote an article talking about one of the best ways to reinvigorate the gas and oil industry, and it makes a substantial amount of success. He suggests that the United States take a hard look at the current ban on the exportation of crude oil, as well as the restrictions in place when it comes to exporting natural gas. Yes, the country needs to make sure that we have reserves of gas and oil for the nation’s use. However, with the sheer amount of oil and gas in the United States, eliminating, or at least relaxing, these bans could be a good idea. It will help the country in a number of ways.
Why did we have this ban in the first place? According to Forbes’ article, in the 1970s, people were worried that the world was running out of resources. They felt that keeping the resources at home was a smarter move. While that may have been the case for the mindset of the 70s, it ended up causing a number of problems, including the commodity price crash. Today, we know that we are not really in danger of running out of our resources. New technologies are allowing us to remove tight oil from the earth. We’re producing shale oil, crude, and more. There’s plenty left.
In fact, there is actually enough that it might be a good idea to do as Forbes suggests and start exporting the oil. It could help lead to a stable oil market. The prices would not be overinflated, nor would they be as low as they are right now. The United States is currently the largest producer of gas and oil in the world, in part thanks to the high-class technology we use to improve the effectiveness of the drilling and production techniques. The country is also exporting about four million barrels of fuel products overseas each day. However, opening up the ability to export even further could provide some huge benefits for the country. In fact, Forbes mentions that a report states that opening export opportunities further could create “between 394,000 and 859,000 US jobs”.
How long will it be before we open up the exports further? It’s unknown, but it is something that the current administration and the one that follows needs to consider. Having the United States become the major player in oil and gas exports can help to remove power from other nations, such as Russia and countries in the Middle East.
About Oil Works Inc.
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 Manufacturing, Mud Systems, Rig Walking Systems, Power Generation, Control Systems, Iron Roughneck Service, Quincy Air Compressors. We are a complete Drilling Equipment Manufacturer and build to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.
