Posted April 27, 2015
The Oil Export Ban: A Relic of the 1970s
Wall Street Journal op-ed (John Hess): While one can debate the reasons for the Organization of Petroleum Exporting Countries’ decision in November to continue flooding the oil markets, the fact is that this is squeezing many U.S. shale oil producers out of business. Oil prices have dropped by 50% in the past six months, and crude oil inventories in the U.S. have grown from 350 million barrels last year to more than 480 million barrels today.
Part of the reason inventory has ballooned is that crude produced in the U.S. is literally trapped here, because American firms are not allowed to sell it overseas. An antiquated rule bans crude oil exports from the lower 48 American states, even though producers could earn $5-$14 more per barrel by selling on the world market. At this moment the U.S. government is considering lifting sanctions on Iranian crude oil exports. Why not lift the self-imposed “sanctions” on U.S. crude exports that have been in place for the past four decades?
The export ban is a relic of a previous era, put in place around the time of the 1973 Arab oil embargo against the U.S., when Washington thought very differently about ensuring America’s energy needs. Other measures related to the 1973 embargo, such as price controls and rationing, were eliminated decades ago, as policy makers realized that they impeded, rather than aided, American energy security. But the ban on crude oil exports persists.
There is no defensible justification for the continued ban on the export of U.S. crude oil.
Read more: http://bit.ly/1GA4e92
More industry news:
- U.S. to Launch Blitz of Gas Exports, Eyes Global Energy Dominance: http://yhoo.it/1zeFLnm
- TransCanada Seeking Approval for Another Cross-Border Pipeline: http://bit.ly/1GA4e92
- Marcellus Production Led U.S. Gas Fields in 2013 – EIA: http://n.pr/1dke7v0
- Colorado Joins Oil-Producing States’ Lawsuit Against BLM Fracking Rules: http://dpo.st/1GxXOVa
- Opinion: New Ozone Standards Could Jeopardize Colorado Growth: http://bit.ly/1GoZeP9
- Video: What is Hydraulic Fracturing? http://bit.ly/1GB83dY
ABOUT THE AUTHOR
Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Mark also was a reporter, copy editor and sports editor. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela live in Occoquan, Va., where they enjoy their four grandchildren.