American energy is a master resource, a powerful tool that, without bloodshed or provocation, can be used powerfully against those that seek to harm us, those that all the while smile to the rest of the World, as their obfuscation and ambiguity continues, as evidenced at the United Nations, last week. (And I mean Russia and Iran!).
President Obama has been far too eager to reject that tool or trade it away. I agree with what Tom Barrasso, The Honorable Senator from Wyoming has expressed. Pass the legislation to lift the export ban!!! Begin this prudent fiscal policy and even fire back with the rhetoric to limit imports of crude from outside the US!
Since the 1970s, there have been tight restrictions on U.S. oil exports. Most of what we export goes to Canada. Yet American exports could quadruple if the law allowed.
Our self-imposed limit gives Russia an added advantage to use oil to fund its aggression. Keeping American oil out of the global market helps keep international prices high, which helps to fund Putin’s belligerence and now obvious thirst for Middle east oil…
Republicans want to lift these restrictions. Legislation is working its way through both houses of Congress to make that happen. While these bills have bipartisan support, so far, the Obama administration has rejected the idea.
The stars are aligned for this President to reverse course. He should make clear that the United States will use all of the resources at our disposal to curb the actions of hostile nations and allowing U.S. crude oil exports would concretely, and immediately, empower America’s allies and undermine our adversaries and serve the American, his most important responsibility.
That’s Right, Serve All the American people first!
Lower oil prices over the past year have hit the Russian economy hard and caused trouble for Putin’s ambitions. More American oil could add to his troubles by increasing global supply.
Sanctions against Iran’s ability to export oil hurt its economy and contributed to forcing Iranians to the negotiating table. Iran’s energy revenue dropped by 47 percent in 2013, and by another 10 percent in 2014.
The Obama administration is preparing to let Iran recapture much of that lost revenue and to reassert itself on the world stage. Why??? Some of the money will also end up in the pockets of the terrorists Iran supports. The president compounds the problem by refusing to let America’s oil compete. Iran soon will be able to export four times as much oil as America does.
Even former Secretary of Defense Leon Panetta has talked about the power of America’s oil. “The U.S. remains the great arsenal of democracy,” he has said. “It should also be the great arsenal of energy.”
Energy can be deployed to restrain the ambitions of our enemies and support our allies around the world. Today, Poland gets 96 percent of its oil from Russia. Belgium gets 60 percent of its oil from Russia and Saudi Arabia. Japan gets 75 percent from Russia and the Middle East.
Why are our Allies negotiating to buy more oil from our Antagonists?
WHY CAN’T WE HAVE GOVERNMENT SUPPORT to build the infrastructure and logistics here in the US to give Europe and Asia the option of buying our American hydrocarbons as an alternative?????
Is that not free trade? Does it not support the economy? Would it not create jobs all over this Country??!!!
Victor Lattanzi is a Harvard trained market strategist with 12 years experience in the oil and gas industry and current Managing Partner of Investment Capital Group. His work has provided creative and innovative solutions for oil and gas companies who are currently struggling with debt, aged AR, and cash flow issues. Here, Mr. Lattanzi and his team is adept at structuring complex mergers, recapitalizations and restructurings for equity and bondholders.
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