US lifts 40-year-old ban on crude oil exports

The United States Congress has lifted the 40-
year-old ban on the export of the country's crude
oil, as part of an omnibus budget bill.
Lifting the oil export ban, which was one portion
of the $1.1tn spending bill that sailed through
Congress on Friday, marks a historic shift for
the booming US oil industry.
The Senate, in a 65-33 vote, approved lifting the
ban, while the House of Representatives passed
the legislation earlier in the day by a 316-113
tally.
President Barack Obama later signed the 2016
spending bill, which includes a provision that
would allow the export of US crude for the first
time in more than 40 years.
The Chairman of the Senate Energy and Natural
Resources Committee, Lisa Murkowski, hailed
the passage of legislation that would lift the 40-
year-old ban on domestic crude oil exports.
''By lifting the domestic crude oil export ban,
we are sending a signal to the world that our
nation is ready to be a global energy
superpower. With crude exports comes job
creation, economic growth, new revenues,
prosperity, and enhanced energy security for our
allies and ourselves.'' Murkowski said.
''The omnibus may be a short-term spending
bill, but thanks to this provision it will deliver
long-lasting benefits for our nation and the
world.''
Murkowski first proposed lifting the ban on
crude oil exports in January 2014 and since then
has built a solid case for modernising the
nation's energy policies.
Congress, concerned about US dependence on
imported oil, imposed the crude oil export ban
after the Arab oil embargo of the early 1970s
that sent gasoline prices soaring and
contributed to runaway inflation.
Arab members of the Organisation of the
Petroleum Exporting Countries imposed the
embargo following the US decision to re-supply
the Israeli military during the 1973 Arab-Israeli
war.
US oil producers will now be able to sell crude
to the already saturated international market.
The bulk of US oil comes from shale producers.
Production and exploration companies argued
the ban, imposed during the Arab oil embargo in
the mid-1970s – was outdated and
unnecessary.
Opponents claimed that lifting the ban would
lead to the loss of oil refining jobs and would be
bad for the environment.
As a trade-off for lifting the ban, the spending
bill includes tax breaks for solar and wind power
and a pledge by Republicans not to block a
$500m payment to the UN Green Climate Fund.