THE MARITIME EXECUTIVE: U.S. Legislation for Crude Exports Approved
U.S. Legislation for Crude Exports Approved
The U.S. House Energy and Commerce Committee approved bipartisan legislation on Thursday that will promote U.S. energy leadership by lifting a 1970s-era ban on crude exports.
Chairman Emeritus Rep. Joe Barton (R-TX) and Rep. Henry Cuellar (D-TX) introduced the legislation which is expected to be considered by the full house later this month.
“The ban on exporting crude oil imposes an estimated $200-$600 billion cost to the U.S. economy, discourages crude oil production, prevents the creation of jobs, and causes higher gasoline prices for U.S. consumers,” said Barton. “We need to use our abundant resources for the highest and best causes – creating jobs, encouraging innovation, supporting our allies and being a leading player in the world market.”
Studies have shown that lifting the ban would create nearly one million new jobs across the United States and help keep prices lower at the pump, said the committee in a statement. A study by the left-leaning Brookings Institution found that, “Lifting the ban actually lowers gasoline prices by increasing the total amount of crude supply.”
The legislation, H.R. 702, is also expected to give U.S. allies around the world the opportunity to import American oil instead of Russian or Iranian oil – providing the United States with new trading partners and increasing leverage in the global marketplace.
The American Petroleum Institute has welcomed the news. “There’s a growing bipartisan mandate in both the House and Senate to bring America’s vast resources to the global market and harness America’s potential as an energy superpower,” said Louis Finkel, API’s executive vice president for government affairs. “This legislation will reverse a decades-old policy and strengthen America’s edge against competitors like Iran. It makes no sense for the U.S. to restrict its own exports while the administration works to let Iran export its crude.”
By lifting the ‘70s-era ban on crude exports, studies show that the U.S. would create more American jobs, provide savings to consumers, and strengthen our allies against hostile nations, according to API. The administration’s own analysis by the U.S. Energy Information Administration confirms that exports of crude oil will drive economic gains for U.S. consumers and workers.
API thanked committee leaders for their bipartisan efforts and urged lawmakers to quickly bring their bills to the House and Senate floors for a vote.