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The decision to lift its ban on crude oil exports From oil to energy dollars

By Sean Wagner,2015-07-03 03:22
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The decision to lift its ban on crude oil exports From oil to energy dollars

    The decision to lift its ban on crude oil exports From

    oil to energy dollars

    The federal reserve to raise interest rates, OPEC production increase, the United States to cancel oil imports, have led to the global oil prices, a drop in global oil prices can't restrict circulation.

    Petrodollars landmark event was born.December 18, the United States congress passed by the house and senate to lift crude oil export bans, in exchange, the Democratic Party obtained including solar and wind energy tax breaks for the extension of environmental protection measures, the act will take effect after U.S. President barack Obama signed, after the White House has expressed support for the legislation, the United States to cancel oil export ban nailing on the plate. A 40-year ban lifting is by no means easy.In the early 1970 s, soaring oil prices caused by the oil crisis in the United States, in order to ensure the security of its oil supplies, the United States in 1975 the energy policy and energy conservation law, strictly limit U.S. crude oil exports.Oil export ban, explain the native oil and alternative energy sources for the confidence, and, more importantly, that America's oil $$to energy.Although U.S. crude oil exports in the short term may be small, but the long-term

impact on the world energy.

    The oil crisis has significantly different with the oil crises of the last century, the parties not only reduce the production capacity, expanding extrusion production cost.Root cause is that the new energy revolution, and changes the dollar cost of change. By political pressure, the pressure of public opinion, forcing countries around the world to join the agreement to reduce emissions, creating market demand for new energy market.At that time, America's new energy can be exported to all over the world, at the same time for unconventional oil and gas reserves of rich countries to provide mining technology.In November 2014, China's carbon emissions agreement with the United States, for China's carbon emissions cap in 2030, under the constraints of the global environmental protection, create a market demand for the use of new energy.

    As the Paris agreement eventually settles, global to clean energy is the trend of The Times, the United States for new energy vehicles in China, production, sales and related basic facilities are made the substantial tax breaks.Germany, Japan, France and other countries new energy research at the forefront of the world, carbon emissions trading, carbon emissions could replace oil dollars into real money.In response

    to realize zero emission of the Paris agreement proposal, such as Germany, member states also plans to 2050 a total ban on the production and sale of the gasoline and diesel.

    Oil may be as the original PC, bloom the final value in the next two hundred and thirty years.

    Countries are now desperately mining, the shale gas revolution, driven by the United States in 2015 is expected to become the world's biggest oil producer.Week ended December 19, raise interest rates after the dollar is strong in the United States, the United States active rig number to restore growth, Goldman sachs said, "the growth in the number of the active drill rally this week, 17 (to 541), ended for four consecutive losses".Anz, according to the "production data reflect U.S. crude oil inventories, U.S. crude oil inventories rose to 491 million barrels a day, for the same period since 1930, most".On December 11, the organization of petroleum exporting countries (OPEC) monthly report, the group members in November crude oil rose to 31.695 million barrels of daily production, record since three and a half years.Next year to lift sanctions against Iran is a big probability event.

    Lower and lower crude oil prices expected, on December 21, brent crude futures fell to its lowest level since 2004, below the

    2008 financial crisis, low while WTI crude oil prices hit a low since the financial crisis.Prominent hedge fund managers, "the oil market big short" PierreAndurand warned oil prices in the first quarter of next year will be further dropped to $25 a barrel, or even lower, global demand will slow down and started to slide around 2022.Andurand hedge fund returns this year has reached 8%, far higher than hedge funds this year average of 0.6%.

    Everyone who compete cash cost is lower, in this regard, the current oil, denominated in dollars us.

    U.S. financial website BusinessInsider reference citigroup analyst, use the cash cost.Most producers cash cost is still lower than the current oil prices, producers also can have the cash flow to support production, only down to lower oil prices, can we make some crude oil producers to stop production.At present the main producers of different oil types need cash cost, are less than $30.Reuters quoted Texas billionaire JohnArnold said, manufacturers survived in 2015, thanks to the service cost cuts, he didn't say is, in the past year, the United States manufacturing enterprises benefit from a stronger dollar, technological progress makes oil drilling more cheap and efficient, this leads to maintain oil production cash costs down.

    Superposition of dollar control with the domestic tax policy, the United States is now part of the abandoned oil dollars in reason, not because the energy is not important, but energy and clean energy is undergoing tremendous changes, energy must be transferred from oil dollars to $$, occupy the high ground clean energy future, whether monetary control, or technical control, and incentive mechanism.

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