The House Approves Bill To End Ban On Oil Exports

An effort to shelve the 40-year-old ban on exporting oil from the U.S.is gaining steam as lawmakers in the House prepare to vote on the issue Friday. Lifting the ban will help schools, hospitals, and local communities across the country that benefit financially from oil production. According to them, lifting the ban on oil exports will help create more jobs for Americans, increase USA exports overseas, and reduce domestic gasoline prices.

The rider was seen as an attempt to veto-proof the bill lifting the oil export ban.

“In the past, I’ve supported lifting the ban on crude oil exports to Mexico and expediting America’s LNG exports”, said U.S. Rep Joaquin Castro (D-Tx).

At the moment, the Maritime Security Program pays shippers with vessels enrolled in the program $3.1 million annually in exchange for their pledge to make their ships available for use during a national emergency or time of war. The U.S.is now the second largest producer of crude oil in the world.

“An extra dollar or two for the price of our product today is very important because our margins are incredibly squeezed”, said Doug Suttles, CEO of Encana, a Calgary, Alberta-based company that pumps oil and gas in the U.S.

Oil coverage analyst Kevin Book of ClearView Energy Partners expected the bill to pass the Republican-led House, however stated it was unlikely to win the 290 votes needed to override a White House veto.

Still, a strong show of bipartisan support for the bill in the more polarized House could influence the outcome in the Senate, where Republicans have been more broadly supportive of a ranges of business interests.

“The crude oil export ban was created during a time of oil scarcity”, said Chairman Emeritus Pearce.

Despite the president’s veto threat, Cramer said he was confident and hoped to be able to put significant pressure on the president, with a bipartisan vote on a bill that already has a number of Democratic co-sponsors.

Rep. Kathy Castor, D-Fla., called it “an unconscionable giveaway to Big Oil”, while Rep. Frank Pallone, D-N.J., said it would boost annual profits for major oil producers by almost $30 billion over the next decade. “Now we have an opportunity to feed a world in need of our energy resources”.

The proponents of the bill argued that the ban on oil exports is no longer useful since the United States’ oil and gas production reached record highs.

This is a vote to level the playing field for US workers and businesses who should be allowed to compete against foreign oil suppliers like Iran and Russian Federation, said George Baker, executive director of the coalition of more than a dozen oil companies, which also includes Marathon Oil Corp., and Apache Corp.

“Republicans took a “my way or the highway” approach and rejected the inclusion of provisions that would improve the legislation”, said Castro in a statement, citing funding for environmental protections.