Hoeven: Time to Lift Crude Oil Export Ban

President Barack Obama opposes lifting the ban, but observers on both sides of the aisle doubt that he will hold up funding the USA federal government over it.

The U.S. Congress is on the verge of lifting a 40-year ban on crude oil exports onto the worldwide market, an issue that pitted Texans who work in oil production – and their House representatives – against those who work in refineries.

Oil producers including ConocoPhillips and Continental Resources Inc. had lobbied in favour of repeal, while some independent refiners, such as PBF Energy Inc., said they may be harmed by an end to the crude-export restrictions.

Restrictions on USA crude exports may disappear. “When we are restricted from exporting (oil) in essence our competitors – like OPEC, Venezuela and Russian Federation – have an advantage on us”, Hoeven said.

The Congress had imposed the ban on export of U.S. crude in the ’70s after an oil price boom sent gasoline prices soaring and led to runaway inflation, fearing that continued exports would make United States dependent on imported oil once its reserves get depleted.

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S.jobs and 8 percent of the USA economy.

How the end to a 40-year-old ban could affect gas prices and the environment. “Ultimately the US consumer will pay a higher price, and the planet will have more pollution”. In response, US companies are cutting costs and slashing spending on new drilling as they try to preserve cash flow and stay in business. The proposed omnibus spending bill (and parallel tax extenders package) adds $830 billion (over ten years) of tax breaks many of which are not payed for nor do they benefit the public good.

The budget compromise also grants a five-year extension of the investment tax credit for solar and an extension of the expired production tax credit for wind retroactively to last year and ending in 2019.

For example, in exchange for Democrats’ support for lifting ban on the crude oil exports, Republicans agreed to extend wind and solar tax credits and authorise a conservation fund for three years. According to a report by Jason Bordoff and Trevor Houser, allowing exports of U.S. oil could increase carbon emissions by up to 168 million metric tons.

The move could benefit countries like India in the long run, giving it another option to purchase crude oil from non-Middle eastern countries.

Key Democrats in the House were frustrated that the crude oil ban language was included.

While the use of hydraulic fracturing, or “fracking”, remains controversial due to environmental concerns, American oil and gas production has skyrocketed.

“It is corporate welfare for the most profitable industry in the history of the world, the oil industry”, he said.

Scalise says the move could create as many as 5,000 jobs in Louisiana alone.