Self-Imposed Sanctions? | Russell T. Rudy Energy LLC
“World Oil” reports that Senators Lisa Murkowski (R-Alaska) and Heidi Heitkamp (D-North Dakota) have proposed an amendment to the Iran Nuclear Agreement Act which would lift the crude oil export embargo. Murkowski and Heitkamp contend that the export ban is a de facto sanctions regime which we have imposed on ourselves. It prohibits U. S. producers from competing in global oil markets with other nations such as Iran, and denies our allies access to alternative, and arguably cheaper, sources of crude. By allowing domestic exports we could increase supply and lower prices in the global market and potentially reduce Iranian oil revenues.
Murkowski and Heitkamp are joined by Senators John Hoeven (R-North Dakota) and James Lankford (R-Oklahoma) as co-sponsors of the amendment. The proposal would require the Department of Energy to prepare a report on Iranian crude oil and condensate exports within 60 days, and lift the export ban on domestic production. The amendment would however, retain the president’s authority to reinstate the prohibition of exports in the case of a national emergency.
Murkowski, the Chairman of the Senate Energy and Natural Resources Committee, has been advocating repeal of the crude export ban and liberalizing energy trade policies since early 2014. Heitkamp, in addressing the Senate stated, “We have an opportunity to say to our allies-whether it’s Japan or Europe-don’t worry about whether somebody is going to hold you hostage because we’ve got your back. But we can’t have their back if we don’t have the ability to export our crude oil.”
To read the article in its entirety, which also includes a line to Murkowski and Heitkamp’s remarks on the Senate floor, please go to http://www.worldoil.com/news/2015/4/29/us-oil-export-ban-is-de-facto-sanctions-regime-against-ourselves-senate-hears .
