Crude Oil Export Ban the Talk of the Industry

Wednesday, March 4th, 2015 and is filed under Oil and Gas Current Events

Crude Oil ExportsAs hearings began on Tuesday for the Energy and Commerce Committee, the oil industry is abuzz with talk of Congress lifting the crude oil export ban that has been in place since the 1970’s. Here are highlights of some of the articles flooding the internet.

Crude exports key to U.S. success in 21st century energy market –
“Today’s hearing is not the first to explore U.S. energy exports, but it marks a fresh opportunity for a new Congress to move quickly this year and harness the wide-ranging economic benefits free trade. Our competitors overseas are working hard to lock-in their economic advantages as exporters, and we must act now to ensure U.S. producers can compete effectively for a share of the global market.

It’s the smart thing to do for U.S. consumers, for U.S. workers, and for the energy security of America and its allies.” Read more…

U.S. shale producers get no relief from rising Brent: Kemp –
(Reuters) – More than ever before, U.S. shale producers are becoming the victims of outdated restrictions on the export of crude oil from the United States.

Export controls have ensured the most oversupplied part of the global oil market is at home in the United States.

The main beneficiaries are rival producers in the Middle East and elsewhere able to obtain higher international prices thanks to the export ban.

U.S. shale producers have received almost no benefit from the improvement in international oil prices since the middle of January. Read more…

Why now is the time to invest in oil...

Oil Producers Make Pitch to Congress –
The slumping oil prices that have prompted energy companies to lay down rigs and lay off workers hit domestic producers harder than their international counterparts because of the U.S. crude export ban, Pioneer Natural Resources CEO Scott Sheffield is expected to tell a House panel on Tuesday.

“Price cycles come with the territory, and we will navigate this downturn as we have in the past,” Sheffield says in prepared testimony filed with the House Energy and Power Subcommittee, ahead of a Tuesday afternoon hearing on “world energy markets.” “Producers of domestic oil are especially disadvantaged compared to foreign producers, however, because they cannot receive global prices.”

Pioneer is just one of dozens of oil companies that are pressing the Obama administration and Congress to undo the 40-year-old ban on exporting raw, unprocessed crude. Read more…

Crude exports in spotlight as House leaders urge slow approach –
“Congress needs to be aware of all of the impacts before considering any modifications to energy policy,” said House Energy and Commerce Chairman Fred Upton, R-Mich., suggesting lawmakers should use the same “careful and deliberative approach” previously applied to liquefied natural gas exports. “We again are undertaking a thorough review and will consider all perspectives – including producers, refiners and consumers.”

And Rep. John Shimkus, R-Ill., noted that the political stakes are high for lawmakers who could face recriminations from voters if they support lifting the ban and gasoline prices later climb for unrelated reasons.

“It’s very hard for politicians without a five-second soundbite to examine the macro and micro economic issues,” Shimkus said. “It’s probably why we’re not going as fast on this as we’re doing with LNG (exports), which is an easier argument.” Read more…

Oil TankerLift the ban on U.S. oil exports? –
In 1973, Middle East oil suppliers declared an embargo on sales to the U.S., creating a spike in gasoline prices and backups at the pump. Congress responded, in part, by banning exports of U.S.-produced crude.

Since then, U.S. oil production has surged — especially in recent years. But the export ban remains.

Now, many U.S. oil producers are calling for the ban to be lifted, and finding some sympathetic ears in Washington, D.C. In fact, there’s a hearing in the U.S. House next week to consider the idea. Read more…

Majority of Americans support lifting 40-year-old ban on oil exports: poll –
Most Americans support lifting restrictions on oil exports to countries that are trade partners, saying that the change would have a positive effect on the U.S. economy.

A poll conducted for the Producers of American Crude Oil Exports (PACE) released Tuesday found that 69 percent of registered voters surveyed favor allowing oil exports to “customers in countries who are trading partners,” while 25 percent oppose the policy.

Given a choice between the two policies, 65 percent supported allowing producers to sell crude oil to trading partners, while 31 percent favored only selling to U.S. customers. Read more…

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