Everyone is talking about how the deal with Iran will impact the nation’s ability to create nuclear weapons. What seems to be flying under the radar, however, is the impact the deal, or potential deal, is already having on oil prices.
Under the sanctions imposed on Iran, Iran was greatly restricted from exporting oil around the globe. If this deal is approved by Congress, or Obama finds another less constitutional way to enact it, Iran will again become a major player in oil exports. Iranian oil tankers have already left port for Asia, so that if and when the deal is approved, it can start exporting again immediately.
These actions have caused the price of oil to fall in anticipation of the increased supply. This is hurting the job market in the oil industry in America. Now, before anyone starts screaming about the importance of free trade, it is important to note that American oil producers have been prohibited from exporting crude oil for 40 years. If Iran is going to be given the right to export its oil, shouldn’t America as well?
It is hard to understand the Obama administration’s logic here, but when one considers the Keystone Pipeline issue, things may come into more of a focus. Again we see that the administration seems to think that Iran exporting oil is all well and good, while Canada exporting oil to the United States is not. The fact of the matter is this: that the administration does not want to upset environmentalists in their base by increasing oil imports and exports, but realizes America will still need lots of oil, even if amazing strides are made in renewable technology.
It’s a win-win for the Obama administration: make the environmentalists happy, get a deal with Iran. But it’s a loss for the American energy producer and consumer.