Key Senator Says U.S. Office can Lift Part of Oil Export ban
From YAHOO! NEWS
By Timothy Gardner
WASHINGTON (Reuters) – A U.S. government office has the power to approve exports of an abundant type of petroleum and help energy companies begin to partially bypass a 40-year ban on crude exports, according to a report released on Tuesday by Lisa Murkowski, the top Republican on the Senate Energy and Natural Resources Committee.
The ban on crude exports the government put in place after the Arab oil embargo of the 1970s includes a prohibition on exports of unprocessed condensate, a light petroleum that appears in oil reservoirs as a gas, but condenses to a liquid when it leaves the well.
The Bureau of Industry and Security (BIS), an office of the Department of Commerce, can simply modernize its definition of crude to exclude the condensates from the ban, according to the report called “License to Trade: Commerce Department Authority to Allow Condensate Exports.” BIS has changed definitions of other types of petroleum for decades, it said.
“The definition of crude oil could simply be updated, aligning the regulatory architecture with the new supply mix made possible by technological advances,” the report said.
“The Commerce Department has often modified its regulations without either congressional intervention or presidential finding, during both Republican and Democratic administrations,” it said.
Thanks to advanced techniques, including horizontal drilling and hydraulic fracturing, the United States is suddenly one of the world’s top three oil producers, along with Russia and Saudi Arabia, a development energy experts did not think was possible a few years ago.
U.S. energy trade will be debated at a hearing by a panel of the House of Representatives Committee on Foreign Affairs on Tuesday at 2 p.m. EDT. Murkowski and experts from the energy industry, a think tank, and academia are slated to testify at the hearing.
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