US CHAMBER OF COMMERCE BACKS LIFTING OIL EXPORT BAN

The U.S. Chamber of Commerce has publicly backed bill H.R. 702, proposing to lift the ban on US crude oil exports in light of “changing crude oil market conditions.”

The bill, which passed through the House of Representatives by 261-159 votes, must now pass before the Senate and the President Barack Obama before it can become law.

Aiming to promote the efficient exploration, production, storage, supply, marketing, pricing, and regulation of energy resources, H.R. 702 would primarily be a boon to operators of international tanker tonnage. Breakbulk and heavy-lift operators would benefit from an invigorated U.S. economy and a renewed interest in oil and gas exploration and production in the U.S.

Bruce Josten, U.S. Chamber of Commerce executive vice president, government affairs, said in an open letter: “Exporting oil would benefit the U.S. economy and reduce the influence of countries and groups that use oil exports for purposes inconsistent with America’s geopolitical and national security interests. The chamber commends Congressman (Joe) Barton and Congressman (Henry) Cuellar for their leadership on this issue and their desire to bring U.S. policy into this millennium. The chamber strongly supports H.R. 702 and urges the Subcommittee to consider and swiftly report the legislation favorably.”

Republican Joe Barton introduced the bill in April, stating that a reversal of the oil export ban would lower gasoline prices, stimulate the U.S. economy and enhance national security through reduced oil price volatility.

Josten backed Barton's sentiments, highlighting the dangers of a continued low oil price on the U.S. oil and gas exploration and production industry. Over the past eight months, lower oil prices have meant that more than 1,000 rigs have had to be laid down, resulting in an estimated 150,000 lay-offs.

“Much of this pain was unnecessary,” Josten said. “The export ban denies U.S. oil producers the higher price at which globally traded crude is priced. If domestic producers could export and negotiate that higher global price, a significant number of potential U.S. wells that are now uneconomic would get spudded, putting thousands back to work.”

LINK: http://www.breakbulk.com/us-chamber-of-commerce-backs-lifting-oil-export-ban/