Sunday, September 13, 2015

Crude Realities: Time to Lift the Ban on American Oil Exports


Today I would like to touch on something that is not on the minds of many Americans, especially with an election year coming up. The issue at hand is the exportation of American crude oil supplies to international markets. This issue is more important then many politicians, bureaucrats, and policy makers make it out to be. The only people that seem to be taking notice are a small fraction of congressman and many private sector oil barons and businessmen. 

      It seems very unusual right? The United States of America exporting our most beloved resource, crude oil. Many people never thought they would see this day, while others are using all means possible to keep said day from arriving. We are not living in the 70's or 80's anymore, and, although these trade barriers were necessary in a time not so long ago, they no longer hold merit in the globalized world of today. 

      The following paragraph's aims are to give the reader a brief understanding of U.S crude oil exportation policy and reasons why it was first implemented. This passage will also touch on the standing of this crude oil policy in the current global environment and why it needs to be reevaluated and amended. 

The oil export ban all started with OPEC and the Arab Oil Embargo in the mid 1970's. Throughout the mid-1970's the U.S encountered multiple oil and gas shortages at the hands of middle-eastern oil kings. After the second oil shortage in 1979 it became apparent that something had to be done. American legislators knew they could never allow such unprecedented oil shortages from occurring again both for national security and economic reasons as well as the effect it had on the average American, their constituents. 

Moving forward to present day. The U.S, assisted by hydraulic-fracturing and chaos in the Middle East, has become a major global oil producer. We have curbed our massive domestic oil consumption with domestic supplies and created a crude oil surplus. The U.S now has the means of exporting excess oil, creating new jobs, and stabilizing the volatile global crude oil trade.

This oil ban no longer fits reality, and certain members of congress are fully aware of the incompatibility this ban has with the current world disposition. It is no surprise that some of the biggest congressional proponents of U.S oil exports are senators and congressmen from Alaska and Texas (William Hurd, Henry Cuellar, and Lisa Murkowski) but they may be exactly the right people to take the reigns on this issue because those two states have the biggest stake in the matter. This directly connects to the duality of Congress as both a national lawmaking body and a small-scale constituent protector. The members of congress mentioned in the previous sentence are practicing both roles while fighting for the restructuring of the oil export ban legislation. The member’s see that this oil exportation will lead to more jobs and more economic stimulation in their home states, which contributes to their reasonability to their constituents. They also see that the modification of this ban will lead to the stabilization of the global oil market, the decline of OPEC, and the countering of the Russian and Iranian oil markets once sanctions are lifted, this directly connects to congress being a national law making body. They see the amending of the Oil Exportation Ban as killing two birds with one stone, in that their constituents are happy and the country as a whole is protected both economically and physically.

This economic matter merits much consideration from not only our elected members of congress but also the average citizen. It may seem like a minor issue in such a chaotic and unpredictable world but with so much riding on amending oil export legislation maybe it should become a more mainstream issue. But that is up to you. If you think this issue warrants your attention, contact your elected officials and tell them how you feel.

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