SouthViews No. 105, 15 July 2014

Welcome to the real world

By Humberto Campodónico

It is currently being discussed in the United States if the Export Administration Act (EAA) of 1979, that prohibits crude oil exports, is to remain in force. Why? Because the US is experiencing a sharp increase in the production of shale oil and shale gas (also called “unconventional”). And oil and gas companies want to export their surplus production. First question, how can there be a law in the US that prohibits such an elemental activity as exports? Well, the EAA exists due in large part to the geopolitical problems of the late 1970s, and applies not only to oil. (more…)