Why allowing crude oil exports has impacted U.S. economic growth

By Khyathi Dalal

U.S. to allow oil export

The U.S. Department of Commerce has decided to allow the first exports of U.S. crude oil since Congress imposed a ban on such sales, except to Canada since the 1970s. Ultra-light oil, often referred to as “condensate” by the energy industry, will be cleared to be exported abroad, according to a private ruling by the federal government. This move would help the U.S. economy resume oil sales abroad. It would allow the economy to reap the full benefits of the shale revolution that has propelled the U.S. back into the top ranks of global oil and gas production.

U.S. oil exports

The Department of Energy total U.S. crude oil exports data reflected that for the third week ending June 20, exports touched its 52 week high of 273—1,000 barrels per day—a significant surge from 74 in the previous week.

It’s important to note how the beginning of the U.S. crude oil exports might affect the Guggenheim Shipping ETF (SEA) and crude tanker owners such as Tsakos Energy Navigation Ltd. (TNP), Teekay Tanker Ltd. (TNK), Nordic American Tanker Ltd. (NAT), and Frontline Ltd. (FRO).

Outlook

Although the market believes that the condensate export volumes are likely to be limited and minimal, any increase in export volumes should have a net positive impact on the crude oil tanker market. Given the limited condensate field production in the U.S. and limited scope of approvals, U.S. exports of condensate are likely to be limited over the next 18 months. Also, any heavy condensate volumes exported out of the U.S. would be carried out on either Aframax crude oil tankers or Panamax crude oil tankers.

As a result of the Department of Commerce ruling, shipment of condensates could begin as soon as August. Initially, the shipments are likely to be smaller with the U.S. forecasted to export 300,000 barrels of condensate per day by the end of the year.

U.S. Commerce Dept. Expands Export Restrictions on Russia

http://thephilanews.com/ MAY 1, 2014

As part of a series of sanctions announced April 29 by the United States, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced that it is expanding its export restrictions on items subject to the Export Administration Regulations (EAR) in response to Russia’s continued actions in southern and eastern Ukraine. The Department of Commerce has also added 13 companies to the Entity List.

US Senators Urge Full Enforcement on Steel Imports

In a letter sent Wednesday, the senators urged the Department of Commerce to consider the impact of cheaper imports on U.S. steel companies when it issues preliminary rulings later this month. Companies in Mexico and Turkey could be subject to duties on the steel reinforcing bar, which is known as steel rebar and is used to reinforce concrete, if found in violation.

The letter was signed by 31 senators — 16 Republicans and 15 Democrats — including both senators from Ohio.

The Department of Commerce said Wednesday it takes seriously its obligation to enforce trade laws and will make a final judgment based on the facts in each case.

The government probe has drawn the close attention of U.S. steel executives and labor unions as the American manufacturing industry steadily declines due in part to globalization and foreign competition, displacing jobs and shrinking the U.S. middle class. Last month, United Steelworkers union president Leo Gerard cautioned that the steel industry could be on the verge of elimination if trade laws are not fully enforced.

Read the full article in Washington Post

Teaming Up to Support the U.S. Economy. Ken Hyatt Speech

The Department of Commerce, including the ITA team, came together to host the SelectUSA 2013 Investment Summit, a first-of-its-kind event to attract foreign direct investment (FDI) to the United States. We gathered an incredible team of government and business leaders to explain why the United States is the best place in the world to invest. The conference was sold out, with approximately 1,200 attendees representing nearly 60 countries, 47 states, economic development professionals, government officials and top CEOs from around the world. I know that we’ll be able to share some success stories soon.

During the next few weeks, we’ll share some important information and follow-ups from the SelectUSA Summit, particularly for those who were not able to attend the event. I also encourage you to read the updated FDI report from the White House and the Department of Commerce to understand how FDI benefits our economy and why the United States remains the world’s premier destination for investment.

We also said goodbye to Francisco Sánchez, who left public service this week after more than four incredible years of leadership here at the International Trade Administration. I know Francisco will be sorely missed, and we wish him the best in all future endeavors.

One of Francisco’s many accomplishments was leading ITA through its reorganization, which took effect on Oct. 1. We’ve restructured our team to make us even more effective at supporting U.S. exporters while streamlining our operations.

I’d like to congratulate the ITA team and the Department of Commerce for all of its accomplishments since returning to full operation in mid-October. For everyone who supported the SelectUSA Summit, thanks for your diligence and hard work. I know the event will prove itself a resounding success.

Thanks to all of you for supporting trade, investment, and American workers.

Ken

article from http://trade.gov/publications/ita-newsletter/ photo from: trade.gov