The reason is- the termination of the ban on crude exports will be traded for extensions in wind and solar tax credits sought by Democrats with enhanced funding for parks from the oil revenues.
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There’s growing momentum to kill the restriction and a deal could be reached before the end of the year as part of a broader spending and tax bill that’s making its way through Congress. Many economists, however, say that USA oil exports would have little or no effect on prices, largely because the US already exports record amounts of gasoline and diesel.
“The decision by President Obama and Democratic leadership to cave in to the demands of the fossil fuel cartel will harm Americans in order to give oil companies larger profits”. “According to the Government Accountability Office, consumer gas prices here at home could drop as much as 13 cents per gallon so families can save more at the pump”, Ryan said. Americans faced rising prices and long lines at gas stations because of an embargo by foreign oil producers. US production, which had reached nearly 10 million barrels per day in the early 1970s, was halved by 2008.
“The dismantling of a 40-year-old national policy to support energy independence could trigger a tsunami of crude oil moved by train or pipeline, increasing the risks of local fires and spills”, said the Seattle-based think tank the Sightline Institute in a statement criticizing the impending congressional action.
“We’ve sort of put all our economic eggs in the oil basket at this point and when the price is low of course the economy of North Dakota does suffer”, says Schafer. The U.S. oil fields produce what is called light sweet crude. That’s why the move is likely to make oil and gas prices in the future cheaper than they would otherwise be. That caused global prices to sink, narrowing the discount for US crude and limiting the chances for producers to sell their oil at a better price in the export market. “Study after study shows that America’s energy exports will drive job creation and protect our allies…during negotiations with hostile nations”.
Environmental groups also want to keep the ban in place. “We’re talking about leveling out some of the volatility we see because the market has access to USA barrels”, Mr. Lance said.
Lifting the ban would create an estimated one million American jobs in almost all 50 states within a matter of years, and it would add Dollars 170 billion annually to the US GDP, Ryan said.
Some lawmakers are looking to ease anger from refiners by offering tax credits to the industry, especially in the Northeast.
It would extend for five years tax breaks for solar, wind, and other renewable-energy development – a win for Democrats. As well, refineries in New Brunswick and Quebec have been importing crude by ship from the U.S. Gulf Coast.
Though Republicans strongly favored lifting the ban, some GOP lawmakers have other problems with the package.
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With U.S. oil production now rivaling that of Saudi Arabia, supporters of lifting the ban said U.S. policy should be updated to reflect the new energy landscape. “There is a window right now to get this done”.
