API praises Congress for lifting crude export ban br

And the addition of USA oil on the market could prevent the kinds of price swings we’ve seen in the past decade, according to some experts. Heidi Heitkamp (D., N.D.), who has been one of the most vocal supporters of lifting the ban, which Congress first put in place in the aftermath of the 1973 Arab oil embargo.

Democrats said that the provisions would create tens of thousands of green jobs and reduce carbon emissions by a greater magnitude than lifting the export ban would increase them. Republicans saw a rare chance to help business by reversing a long-standing policy.

The prospect of unfettered exports offers is a boon commodity trading houses such as Vitol Group and Mercuria Energy Group Ltd, which have built up their oil trading desks and invested in ports, pipelines and export facilities even as a slump in commodities prices to the lowest in 16 years hurts other parts of their businesses. Because U.S. crude isn’t as cheap relative to world prices as it has been in recent years, exporting it would be now uneconomic for many producers. The $1.1 trillion tax-and-spending package is also expected to include a five-year extension on credits for wind and solar energy producers.

Democrats blocked GOP efforts to thwart administration regulations on clean air and water, bolstered by the threat of a presidential veto, as congressional leaders and the White House hammered out the massive budget deal.

The decision, however, has yet to be passed by the US Congress and signed into law by President Barack Obama.

New Mexico Oil and Gas Association Vice President and Director of Communications Wally Drangmeister said that the export ban lifting is excellent news for producers in New Mexico and the entire domestic industry.

“Today was a big win for the American people that made history with a strong bipartisan vote”. The Organization of the Petroleum Exporting Countries has been allowing market forces to set prices for the past year, abandoning its previous policy of manipulating prices through the use of output quotas.

Opponents of lifting the export ban said the action would harm the environment and could lead to an increase in fiery derailments of crude-carrying trains.

US oil now sells for around $36.25 a barrel, compared to Middle East oil that sells for 50 cents more, a difference that wouldn’t justify the cost of shipping, Kloza said. The U.S. government doesn’t limit exports of refined petroleum products, which have more than 100% in the last eight years. The spending bill contains a tax deduction for those refiners to help blunt any potential negative impact on them.

Crude oil exports will benefit American consumers.

“I think in the long-term, it should mean better prices for Wyoming operators”, he said.

More than a dozen independent oil companies, including Continental Resources and ConocoPhillips, have been arguing that unfettered oil exports would eliminate market distortions, stimulate the US economy and boost national security. About a third of those imports came from OPEC-linked nations.

“It’s not going to be a miracle, because the price of oil is so low”, Drangmeister said.