And earlier this week, the White House said the president would veto the bill if it cleared the Senate.
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Oil industry officials hailed yesterday’s U.S. House of Representatives vote to lift the 40-year-old ban on crude exports as an opportunity to save consumers money and create new jobs, but environmentalists said it would worsen global warming and heighten the risk of harmful spills.
In light of the Arab oil embargo in 1975 the US placed a ban on exporting oil and petroleum, though it’s been more of a limitation than a full-out ban. “In response to that crisis, the USA placed a ban on exporting domestic oil – which today is harmful to our economy and the industry”.
In addition, ending the ban undoubtedly would drive up domestic oil-and-gas production, something the administration acknowledges is a good thing for the nation. Restricting the export of crude oil has no positive impact on pricing or fuel availability for Americans. “We have a large number of Democrats … and large number of Republicans” supporting the bill.
“Legislation to remove crude export restrictions is not needed at this time”, the White House said. “Some critics think exports would only benefit oil companies”. This worked for about a decade, until the share of imported oil began to skyrocket.
Obama is joined by fellow Democrats resistant to lifting the export ban. An independent analysis by IHS found that allowing United States oil exports would support an average of 400,000 jobs per year, generate an additional $1.3 trillion in government revenue through 2030, and add $265 billion in additional disposable income to every American household. Lifting the export ban will not stem the fall, but it might help US producers find more markets and stabilize production. This is the time to lift this ban. None but the usual from this White House – pure politics.
The House of Representatives passed a relatively clean oil exports bill on Friday, without tethering the trade policy change to other issues, save for authorizing new federal spending on a maritime security program. “We are now one step closer to overturning this outdated ban, and I will continue to work with my colleagues in the Senate to make this a reality”, Sen.
The bill was approved, 261-159, with 26 Democrats joining Republicans in backing the measure that now heads to the Senate, where prospects are uncertain.
“The oil and natural gas industry has really left it to the Congress to decide how they develop the energy policies, who they give tax credits to, who they subsidize, who they don’t”, he said.
‘An energy-secure USA that is a net exporter of energy has the potential to transform the security environment around the world, notably in Europe and the Middle East. More importantly, lifting the export ban strengthens our national defense, enhances our geopolitical standing and weakens the standings of countries like Russian Federation, Iran and Venezuela who are opposed to American interests.
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As of right now, the Democratic Party and President Obama have already declared their blockage of any legislation removing the ban.
