EU encourages abolishment of crude oil export ban

A recent leaked letter from the EU, obtained by The Washington Post, appears to urge the US to lift its crude oil export restriction.

The letter states:

‘In the High Level Working Group (HLWG) report published in February 2013, it was agreed that the EU and US would negotiate energy and raw material (ERM) commitments in the rules pillar, supporting the aim of developing rules relevant to bilateral ERM trade and investment, and to potential obstacles caused by the lack of pro-competitive regulations outside our borders. Such commitments could over time contribute to the progressive strengthening of trade and investment rules for ERM, thereby benefitting our security/diversity of supply, our consumers and our companies.’

‘The EU has so far not received a reaction from the US that corresponds to the ambitious goals set in the HLWG report. We have only noticed some limited opening in the US side to consider energy specific provisions on transport and transit and cooperation provisions on off-shore safety’.

‘The US has also been hesitant to discuss a solution for US export restrictions on natural gas and crude oil in the TTIP through binding legal commitments. The EU propose to include a legally binding commitment in the TTIP guaranteeing the free export of crude oil and gas resources by transforming any mandatory and non-automatic export licensing procedure into process by which licenses for exports to the EU are granted automatically and expeditiously. Such a specific commitment would, in the EU’s view, not require that the US amend its exiting legislation on oil and gas’.

Edited from a letter by Emma McAleavey.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/09072014/leaked_letter_887/