Posted June 22, 2015
Op-ed: America’s Self-Punishing Oil Export Ban
Wall Street Journal (Hamm) -- Amid news of a pending nuclear deal with Iran, some OPEC countries have struck agreements with refineries in Asia to avoid losing market share when Iranian oil comes back on the market. If U.S. policy will allow Iran to export oil, shouldn’t it allow America to do the same? Clearly, our allies would rather get their oil from America than Iran if given the choice. But without the ability to export, the U.S. is not even in the game.
Congress must lift the ban on U.S. crude oil exports. The ban is a terrible relic of the Nixon era that harms the American economy. As Sen. Lisa Murkowski (R., Alaska) has pointed out, restrictions on oil trade effectively amount to domestic sanctions. Combined with a mismatch in refining capacity, the ban on oil exports is creating a significant discount for U.S. light oil at no benefit to anyone except refiners and their foreign ownership. It has cost U.S. states, producers and royalty owners $125 billion in lost revenue in four years, according to industry estimates.
Foreign producers are using their heavy oil—and the U.S. ban on exports—as a weapon against America. Over the past three decades countries such as Venezuela, Mexico, Saudi Arabia and Canada have overtaken U.S. refining capacity to run their heavy crude in American refineries and capture a large portion of the U.S. market. Without firing a shot, they have disadvantaged American oil and interests.
Read more (subscription required): http://on.wsj.com/1Gv2DeQ
More industry news:
- Video – Hess CEO Says U.S. Oil “Trapped Here”:
- EIA – U.S. Crude Oil Production Growth Helps Reduce Gulf Coast Imports: http://1.usa.gov/1QLYWwy
- Kinder Morgan LNG Export Project in MS Applies for FERC Approval: http://bit.ly/1LfE8ZK
- Analysis – Drillers Big on Conservation of Water: http://bit.ly/1dZeIlP
- St. Paul Refinery Increasingly Focuses on Bakken Oil: http://strib.mn/1Lfycjr
- Blog – Top 10 Things I Learned on My Summer Trip to the Bakken, Part II: http://bit.ly/1JdUC5e
- Video: Time Lapse of Rigrunner Walking System (Ranger Resources):
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.