If the major oil producers see an opportunity to potentially produce an extra 3 million barrels per day of oil in the United States, they aren’t going to let it pass. To put that amount in perspective, in the past six months the highest daily total imported from Saudi Arabia, was under 1.5 million barrels per day.
However, the oil companies can only find markets for this additional production and profit if the U.S. ban on exporting crude oil is lifted. And while logic would argue that pushing to increase the amount of oil being produced at a time when the oil price is crashing due to global oversupply of crude is an odd strategy, the oil companies are doing just that.
At the Columbia University Energy Symposium on November 21st, one of the day’s events was a “Fireside Chat” about ending the crude oil export ban featuring moderator Robert McNally, president of energy consultancy The Rapidan Group, and Marianne Kah, chief economist for ConocoPhillips.
Early in the conversation, McNally asked Kah, “In the grand scheme of things with all of the energy challenges we have, how important is this issue?”