US Oil Companies Want Congress to lift Ban on Exports

The New York Times published a piece entitled “Petroleum Industry Gains Momentum In Push to End Ban on U.S. Oil Exports.” In the piece, it discusses the efforts of companies that are looking to Congress to removed a 40 year export ban. This ban was in place initially to protect the U.S. from being highly dependent on outside oil; with the Oil Embargo of 1973, the U.S. was one state in which was not being sold OPEC oil (the Netherlands being another).

The push for this is with hopes that these companies can begin selling oil internationally, which could help their revenue. Interestingly, they are using a number of tactics to help sway opinion on this issue. For example, the story explains that

“…the oil industry has financed organizations whose scholars have generated reports praising the proposal. It has placed op-eds in Capital Hill newspapers and paid for television spots in key markets, including one round of new ads introduced last week naming a dozen Democratic House members the industry is trying to pressure to back the measure.” In addition, “Industry executives have even pressed foreign governments to communicate their support through “diplomatic channels.”

Much of this has to do with increased production of oil in the United States. As these companies’ production increases, they are looking for outside, external markets. In addition, if this were to happen, one might also expect an increase in domestic exploration, something that has been cut drastically by companies ever since oil supply has increased (due to OPEC’s push for more supply (and more specifically, countries such as Saudi Arabia, and the Gulf States in OPEC (as opposed to other countries such as Iran, who are more critical of the increased oil supply)).