By Lauren Pratt |Staff Writer|
Two hundred and sixty one of 435 representatives took to action Friday, Oct. 9, in attempt to lift a 40-year-old ban on crude oil exports.
The has not yet reached the Senate for approval, but in the case that it does, President Barack Obama has stated he will veto the bill. “The country needs to focus more on alternate energy (wind, solar, water),” according to the Washington Street Journal.
The Energy Policy and Conservation Act of 1975 was a bill Congress passed used to stifle the harsh impact of future oil embargos (an official ban on trade) by foreign oil producing countries. The bill was enacted due to the aftermath of the 1973 Arab Oil Embargo that left the world with high oil prices.
Senators for the repeal believe this will increase the United States gross domestic income by supplying oil to countries in need, instead of countries seeking the oil from the Middle East or Russia.
The Senate Banking Committee, who has jurisdiction over export controls, banking, pricing controls and more, have endorsed the bill with a vote of 13-9.
Sen. Heidi Heitkamp of North Dakota, the only democrat to support the bill, believes it “will lower or stabilize gas prices, support jobs and increase influences abroad,” according to the Associated Press.
The ban prohibits the exportation of crude oil, and not refined petroleum products. However, there are exceptions.
Crude oil exports to Canada are permitted, Alaska can export only using the Trans-Alaskan pipeline, and companies within “national interest” may request exemptions to export, according to Brookings Institution Scholars.
Pioneer Natural Resources Co. and Enterprise Products Partners L.P are the two companies that started the uprise. The pioneers needed permission to export a minimally processed form of ultra light oil condensate, that can be turned into gasoline or other fuels. Though the ban does not permit this kind of export, the U.S. Department of Commerce approved it.
Fracturing (fracking) is the process of drilling down into the earth before a high-pressure water mixture is directed at the rock to release the gas inside. Water, sand, and chemicals are injected into the rock which allows the gas to flow up and out.
Fracking technology is being used to unlock oil reserves in North Dakota and Texas. The U.S. still imports millions of barrels a day, however, fracking loosens North America’s dependence on importing and stockpiling of domestic oils.
Environmentalists argue lifting the ban will increase greenhouse gas emissions and contribute to harmful climate change due to the chemicals released in the air when fracturing, according to The Wall Street Journal.
The Washington Post reported that some believe the lighter oil the U.S. produces will be better accommodated overseas to help boost other country’s GDP as well as flow back into domestic production here.
Others, like Sen. Ed Markey of Massachusetts, argue that the ban being lifted puts America in a “slippery slope” by sending our oil abroad into countries with high disarray like the Middle East and Russia. This sends jobs and money away from American families, according to www.markey.senate.gov.
CSUSB economics professor Dr. Kazim Konyar has a similar view on the recent uplift when asked how it would economically affect the United States. “If in fact large amounts of oil end up being exported then the oil prices in the domestic markets could increase, hurting U.S. consumers.”
The export policy stays the same for now, however, many hopefuls against the ban believe this uprise will suggest change in the near future.
Leave a Reply