The expansion of the Panama Canal would allow passage of larger ships carrying nearly a quarter more crude oil through the route, the U.S. Energy Information Administration said.
Currently, the Panama Canal can fit ships carrying between 400,000 and 550,000 barrels of light sweet crude through it. The remodel, slated to open in late 2015, would enable ships large enough to haul as much as 680,000 barrels of crude to enter the canal. About 80 percent of the world’s liquefied natural gas tankers could pass through it as well, compared with just a small fraction today, the EIA said.
That could have broad implications for the U.S., should it decide to remove restrictions for exporting crude oil and liquefied natural gas, as it would lower the price for fuel shipped from the country and therefore make it more attractive to buyers.
Supporters of exporting natural gas have pushed the Obama administration to act faster to green-light exports to nations that lack a free-trade agreement with the U.S. So far, three projects have all the necessary federal permits to ship the fuel to such countries.
The debate over whether to end the 39-year-old near-ban on oil exports is heating up, though it’s still fresh.
Many Republicans, virtually all of whom back exporting natural gas, are wary about loosening restrictions on oil exports. Part of that might be due to politics — a recent Morning Consult poll found 52 percent of Americans believe exporting oil would raise gasoline prices.
