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The plan by the United States to export its
surging oil output gained momentum on Thursday as a House of Representatives
subcommittee passed a bill to repeal the country’s 40-year-old ban on oil
exports.
The US recently became the world’s top producer of crude oil and natural gas, surpassing Saudi Arabia and Russia. Its crude oil production increased in 2014 by 1.2 million barrels per day to 8.7 million bpd, the largest volume increase since record-keeping began in 1900.
Aside from the massive shale oil boom and cheap gas prices in the country, the Iranian nuclear deal is also said to be fuelling the move to export the US oil.
The House Energy and Power subcommittee passed the bill by a voice vote. The legislation, sponsored by Republican Representative Joe Barton of Texas, is expected to go to a vote by the full Energy and Commerce committee next week.
Reuters reported that the passage by the full panel would set it up for a wider vote by the Republican-led House, where it is expected to pass. The measure, however, still faces an uphill battle in the US Senate.
Barton said the energy landscape has changed since 1975 when the ban was imposed and a cancellation would provide jobs and help allies diversify their oil supplies.
The bill is supported by oil producers who say they need access to global markets to keep the domestic drilling boom alive.
With the surge in domestic production, US imports of oil and petroleum products from the Organisation of Petroleum Exporting Countries have plunged to a 28-year low, leaving Nigeria as one of the biggest victims.
The US imports of Nigerian crude oil tumbled by 75 per cent last year to 21.51 million barrels, the lowest since the country started importing from Nigeria, according to the Energy Information Administration.
In July last year, the US imports of Nigerian crude fell to zero for the first time on record, according to data from the EIA. In March and April, the country did not import a single barrel from Nigeria.
Not only has the US drastically reduced its import of Nigerian crude, the country is gearing up to export its crude oil, with Asia, a major market for Nigeria, being a key target destination.
After months of pressure over the ban on exports of most domestic crude in the US, the President Barack Obama administration in January took steps that were expected to unleash a wave of ultra-light shale oil known as condensate onto global markets.
The US passed the ban in 1975 on most — though not all — exports of crude oil on the heels of an OPEC oil embargo. That embargo sent oil prices skyrocketing and took a huge toll on the US economy, which had grown dependent on foreign oil.
The US recently became the world’s top producer of crude oil and natural gas, surpassing Saudi Arabia and Russia. Its crude oil production increased in 2014 by 1.2 million barrels per day to 8.7 million bpd, the largest volume increase since record-keeping began in 1900.
Aside from the massive shale oil boom and cheap gas prices in the country, the Iranian nuclear deal is also said to be fuelling the move to export the US oil.
The House Energy and Power subcommittee passed the bill by a voice vote. The legislation, sponsored by Republican Representative Joe Barton of Texas, is expected to go to a vote by the full Energy and Commerce committee next week.
Reuters reported that the passage by the full panel would set it up for a wider vote by the Republican-led House, where it is expected to pass. The measure, however, still faces an uphill battle in the US Senate.
Barton said the energy landscape has changed since 1975 when the ban was imposed and a cancellation would provide jobs and help allies diversify their oil supplies.
The bill is supported by oil producers who say they need access to global markets to keep the domestic drilling boom alive.
With the surge in domestic production, US imports of oil and petroleum products from the Organisation of Petroleum Exporting Countries have plunged to a 28-year low, leaving Nigeria as one of the biggest victims.
The US imports of Nigerian crude oil tumbled by 75 per cent last year to 21.51 million barrels, the lowest since the country started importing from Nigeria, according to the Energy Information Administration.
In July last year, the US imports of Nigerian crude fell to zero for the first time on record, according to data from the EIA. In March and April, the country did not import a single barrel from Nigeria.
Not only has the US drastically reduced its import of Nigerian crude, the country is gearing up to export its crude oil, with Asia, a major market for Nigeria, being a key target destination.
After months of pressure over the ban on exports of most domestic crude in the US, the President Barack Obama administration in January took steps that were expected to unleash a wave of ultra-light shale oil known as condensate onto global markets.
The US passed the ban in 1975 on most — though not all — exports of crude oil on the heels of an OPEC oil embargo. That embargo sent oil prices skyrocketing and took a huge toll on the US economy, which had grown dependent on foreign oil.
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