WASHINGTON: The Obama administration is taking tentative steps to waive the 40 year ban on crude oil exports approving swaps of U.S. light crude oil for imports of heavy Mexican crude oil.
The Department of Commerce approved the transactions, under authority Congress granted the Obama administration, according to congressional sources. Louisiana lawmakers, particularly House Majority Whip Steve Scalise, R Jefferson, and Sen. Bill Cassidy, R-La., have been pushing hard for a lifting of the 1975 oil export ban.
Reps. Henry Cuellar, D Texas, and Will Hurt, R Texas, said the deal will help both countries because U.S. petroleum refineries are not fully equipped to process light crude oil, a key component of shale production.
The U.S. and Mexico have a great relationship when it comes to trade and commerce, and today’s announcement is a clear sign that both countries are eager to further develop their energy sectors, Cuellar said. Louisiana lawmakers are working for legislation to further ease the ban on oil exports.
