Subcommittee Examines Legislation to Lift 40-Year-Old Ban on Crude Oil Exports

Press Release

The Subcommittee on Energy and Power, chaired by Rep. Ed Whitfield (R-KY), today held a legislative hearing examining H.R. 702, a bill introduced by full committee Chairman Emeritus Joe Barton (R-TX) that would eliminate the 40-year-old ban on crude oil exports.

"Americans believe in free trade, and we as a nation have greatly benefitted from policies that allow us to export our products around the world. Everyone from farmers to automakers enjoys the advantages of a global customer base. Unfortunately, 1970s-era restrictions still prohibit most exports of American crude oil. According to an estimate from IHS, lifting the export restrictions and allowing the market for American oil to extend beyond our own borders could create nearly a million additional jobs. Oil exports have the potential to be a jobs success story and a foreign policy success story too," said Chairman Whitfield.

Rep. Joe Barton (R-TX), the bill's sponsor added, "This is an important issue. We can export everything else in America but for some reason we can't export crude oil. America is number one in energy production and it's number one in oil production and it's time we take action to end the decades-old ban on oil exports. My legislation would create jobs, increase oil production, and lower gasoline prices all while strengthening our national security."

In his testimony, Petr Gandalovič, Ambassador to the United States from the Czech Republic, stated, "The larger the number of stable democracies among the world exporters, the more robust the energy security of the Czech Republic and European Union will be. Moreover, U.S. energy exports would send a strong signal to the world community that democracies stick together."

Citing a recent NERA study, former Senior Vice President of NERA Economic Consulting, Dr. W. David Montgomery, outlined the negative effects a continued ban on crude oil exports could have on the economy. He testified, "Restrictions on oil exports reduce U.S. GDP, slow down job growth and recovery from the recession and cause higher gasoline prices."

Mark Kreinbihl, Group President of the Gorman-Rupp Company, argued that lifting the crude oil export ban would indirectly benefit the family-led company he works for that manufactures liquid transfer pumps. Kreinbihl commented, "So what can Congress do to help our business create jobs, both in our company and for our customers and our suppliers? Congress can help increase markets for American-produced crude oil by lifting the ban on crude oil exports."

Chairman Fred Upton (R-MI) concluded, "America's energy picture has changed dramatically. Proponents of this legislation considered today argue that allowing American oil on the global market would boost production and add many new jobs. We need to get this policy right, and ensure that any actions taken don't have unintended consequences that negate the benefits. The question of what to do with our incredible resource abundance is a good problem to have, and I look forward to working with my colleagues on this issue."

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