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The US considers exporting more oil for the first time in three decades!

19 Jun 2013

The U.S. oil boom is moving Congress closer to easing the ban on exporting crude for the first time in more than 30 years, imposed after the Arab embargo.

Benjamin Salisbury, a senior energy policy analyst at FBR Capital Markets Corp. in Arlington, Virginia has said that record production, largely due to advances such as hydraulic fracturing, may outstrip refinery capacity within 18 months to three years.

Net petroleum imports now account for about 40 percent of demand, down from 60 percent in 2005, according to the U.S. Energy Information Administration, the Energy Department research unit.

Since the Arab oil embargo in 1973, where shortages raised prices and resulted in long queues at petrol stations, the number of oil exports has been limited by Congress. The US domestic production increase of a record-breaking 766,000 barrels a day has challenged the notion that American’s need foreign oil.