ConocoPhillips has begun exporting Alaskan oil, boosting U.S. oil exports to their highest level in 57 years, The Wall Street Journal reports.
This significant milestone comes as a result of the country's record-setting oil boom. Hydraulic fracturing has caused supply to soar and prices to drop, as the country's rails and pipelines are overburdened with the readily available supply. On Tuesday, the New York Mercantile Exchange saw oil prices fall 3.6 percent to $91.16 a barrel.
Despite the benefits for consumers, the source reports that the decrease in prices has caused concern for Alaskans, as the state generates a significant portion of its revenue from oil taxes. However, ConocoPhillips is confident that exports from the state will help protect its interests.
According to a spokesperson for the organization, Alaska's oil export contract with Asia "will enable the state of Alaska and ConocoPhillips to potentially realize a higher value for this important natural resource." The organization projects that exports could reach an average as high as 100,000 barrels a day.
A rise in lobbying for lifting the ban on oil exports has accompanied increased domestic production, as producers seek new markets where their product can demand higher prices. The export embargo has been in place since the 1970s, when OAPEC ceased supplying the U.S. with oil.
Regulators have relaxed their stance on exports as domestic reliance on foreign oil has fallen. In July, the U.S. imported 7.6 million barrels a day, compared to 8.1 million a year earlier.
The trend shows no sign of slowing, as oil producers from Texas to Alaska continue to post record production numbers, and infrastructure becomes more efficient. As the market continues to evolve, organizational development consultants can help producers prepare for future challenges.