During the 1970s, motorists waited in long lines at the pump to refill their large, gas guzzlers. Restrictions were enacted at the time to limit gas consumption because of short supply. Dependency on foreign oil and gas imports meant everyday Americans’ ability to easily and affordably refuel their vehicles was closely affected by political events and international issues. During this time, a law was enacted that banned exporting oil and gas. Factoring in the global political concerns of the day, the thinking was that oil and gas produced domestically should stay domestic.
Yet today, the U.S. is faced with a very different picture regarding oil and gas funding. The shale energy boom has resulted in an overproduction of oil and gas and as a result, dropping fuel costs. With this unexpected abundance of oil and gas, producers and those responsible for issuing oil and gas Loans are trying to get the ban lifted so that the U.S. can now export shale oil and gas. This move would represent a dramatic move in U.S. policy and mean even more opportunities for producers and project financing.
Financing Oil and Gas Projects in Order to Exported the Finished Product
Steps toward lifting the ban are being taken. A recent concession that now allows some types of shale oil to be exported. The implications for such a move could be huge. Companies that produced this specially condensed type of shale oil are now able to grow their customer base. Oil and gas funding as well as transportation funding are essential in making the U.S. a major shale oil and gas exporter.
Oil and Gas Factoring Can Pay for Costly Shale Excavations
Many people don’t realize that even though these fuel companies make money, the lengthy and involved process of procuring oil and gas, including the trucks and transportation equipment, costs a ton of money upfront. That’s why oil and gas factoring or transportation factoring is commonly used for such endeavors because they provide companies with cash in advance before they are actually able to get paid for the products they produce, deliver and now potentially export to Europe and other countries across the world.
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