Since the US lifted its oil export ban to most countries, global sales of oil rose despite low prices.
In May 2016, the United States exported more than 1 million barrels of oil a day, which is the country’s record. However, it is also much less than Saudi Arabia’s exports, which delivers more than 7 million barrels to the global markets daily.
The US ended exports in 1975, in response to the energy crisis and the embargo imposed by a then-young OPEC, with an exception for Canada. The government aimed to keep petroleum prices as low as possible in the US. But in 2012, an increase in domestic production of oil and natural gas made the US the world’s largest producer of fossil fuels. Congress voted to end the export ban starting from 2016.
A boost in oil exports fueled investment growth which helped such states like Texas, where most people lost their jobs due to the oil prices fall in 2014.
Then, environmentalists pressured president Barack Obama claiming that lifting the ban would spark growth of investment in oil drilling and that in turn would exacerbate climate change.
The end of export ban played a certain role in keeping prices low in the international market and that was also a way to put pressure on petro states, particularly on Russia.
