Producers in the Eagle Ford are one step closer to being able to ship light crude to Mexico, thanks to a new policy by the U.S. Commerce Department last Friday.
Related: Eagle Ford Companies Eye Mexico
The Commerce Department has given permission for a limited amount of oil to be exported to Mexico. The agency approved an application from Pemex, Mexico’s national oil company, that would allow for the U.S. to exchange our light crude for Mexico’s heavy crude. The amount of crude that would be involved is minimal, but the new policy is significant because it signifies a shift in opinion about the oil export ban that has been in effect since the 1970’s.
“Texas will gain tremendously from this oil swap agreement. The petroleum industry in Texas, in large part due to shale production, such as the Eagle Ford Shale in my district, has revitalized our nation’s economy. These swaps will further positively impact energy exploration in Texas and the United States.”
Many senators hope that lifting the export ban will level the playing field by doing away with restrictions that hinder America’s economic growth and that threaten our long-term goal of becoming energy independent. In June, Heidi Heitkamp took to the Senate floor to try and persuade fellow lawmakers that the oil export ban is not good for the country. Read more