Royal Dutch Shell CEO Ben van Beurden said Tuesday that the United States should lift its 40 year long ban on exporting crude oil to stabilize global fuel prices energy and markets.
In June, the U.S. Commerce Department ruled that Texas-based companies Pioneer Natural Resources and Enterprise Products could ship condensate to foreign buyers.
Those buyers can then turn the condensate into jet fuel, gasoline and diesel.
However, three more applications to export condensate are currently on hold.
Federal agencies have also approved several applications to export natural gas. The first shipments are expected to be small and should start next year.
Speaking at an energy conference hosted at Columbia University, van Beurden said clearing the way for U.S. gas and crude oil exports would bolster long term growth in the North American energy sector, improve U.S. trade balances and stabilize energy markets across the globe.
“Policymakers here in the United States should embrace a truly liberalized, diverse and global energy market,” van Beurden said.
Neither congress nor the Obama administration are expected to reverse the ban in the near future.
“At this point our policy regarding crude oil exports remains as is,” Commerce Secretary Penny Pritzker said.
The ban on exporting crude began during the Arab oil embargo with the passage of the Energy Policy and Conservation Act in 1975.
Crude exported from Alaska’s Cook Inlet, crude produced at certain California fields, crude being transported through the Trans-Alaskan Pipeline and crude being shipped to Canada for domestic consumption is exempt from the ban.
There is no ban on exporting refined products such as diesel and gasoline.