Oil Export Ban To End As Part of 2016 Spending Bill

“The major disappointment in the deal is the lifting of the ban on exporting USA crude oil”, said Rhea Suh, the group’s president.

Therefore, if the current oil prices fail to support consumer spending then the fundamental value goes out the window and we need to concentrate on other implications.

Allowing oil exports would be a win for the US oil industry and Republicans, who had argued the ban was a relic of the 1970s Arab oil embargo.

The deal includes a five year extension of solar and wind power tax credits, which Weinstein says is a mistake.

Taylor Woods is up about 20 percent for the year through mid-December, helped by mostly bearish bets on crude since January, people familiar with its trades said.

U.S. Rep. Pearce was unable to provide comment on Thursday in regards to the policies included in the spending bill.

Barry Russell, president and CEO of the Independent Petroleum Association of America, said, “By passing this legislation and lifting the outdated exports ban, American producers will be able to compete on a level playing field with countries like Iran and Russian Federation, delivering energy security to our friends and allies, advancing the energy revolution that has revitalized our economy and providing meaningful benefits to families and consumers across the United States”.

US oil explorers from Exxon Mobil Corp.to Continental Resources Inc. have been agitating for an end to the export ban for most of this decade as technological advances in drilling and fracking opened up vast, untapped reserves of crude. That 1975 law is to be repealed as part of the “omnibus” federal budget legislation, awaiting final votes after a lot of dealmaking by the leadership, particularly new House Speaker Paul Ryan of Wisconsin.

Republican leaders and the Obama White House are both claiming victory in this week’s dramatic policy shift that allows the export of USA oil for the first time in 40 years, reflecting an abrupt and rare change in the political and economic winds.

The oversupply has weighed on oil costs for greater than a yr. USA crude lately traded at $35.85 a barrel, in comparison with a excessive of $180 a barrel in July 2014.

Demand, not repealing the export ban, persists as the real driver of Southeast Texas refineries, Kloza said.

Lifting the export ban improves the future outlook for North Dakota, which produces light, sweet crude oil that most American refineries aren’t created to process, said Eugene Graner, president of Heartland Investor Services in Bismarck.

“Instead of having an obstruction in place of having all this supply that’s not getting to the rest of the world, we will see proper flow of crude”, said King.

Heitkamp played a role in negotiating the inclusion on lifting the ban in exchange for renewable energy tax credits, meeting with White House staff and fellow Democrats over the past several months who helped reach a deal acceptable to all, according to her staff.

The U.S. already permits some crude exports, primarily to Canada.

Tom O’Malley, executive chairman of refiner PBF Energy, claimed that lifting the ban would lead at least one oil refinery on the United States east coast to close.