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DEPA NEWS
  • 20
    May

    The oil export ban harms national security

    Leon E. Panetta and Stephen J. Hadley

    Wall Street Journal

    The US is willfully denying itself a tool that could prove vital in dealing with threats from Russia, Iran and others.

    The United States faces a startling array of global security threats, demanding national resolve and the resolve of our closest allies in Europe and Asia. Iran’s moves to become a regional hegemon, Russia’s aggression in Ukraine, and conflicts driven by Islamic terrorism throughout the Middle East and North Africa are a few of the challenges calling for steadfast commitment to American democratic principles and military readiness. The pathway to achieving US goals also can be economic—as simple as ensuring that allies and friends have access to secure supplies of energy.

    Blocking access to these supplies is the ban on exporting US crude oil that was enacted, along with domestic price controls, after the 1973 Arab oil embargo. The price controls ended in 1981 but the export ban lives on, though America is awash in oil. [more]
  • 14
    May

    Lift crude export ban or continue to put American energy renaissance at risk, DEPA Chairman Harold Hamm says

    FOR IMMEDIATE RELEASE

    Contact: Sarah Catalano, DEPA Communications Officer
    (405) 424-1699

    Since its inception more than 40 years ago, a lift of the US export ban was not seriously discussed until DEPA undertook a comprehensive education campaign to build the intellectual and public policy basis for lifting the ban. However, there is more work to be done.

    The Domestic Energy Producers Alliance (DEPA) is calling for industry-wide support of the “Energy Supply and Distribution Act of 2015,” introduced yesterday by Senators Lisa Murkowski (R-AK) and Heidi Heitkamp (D-ND), and 11 others. While this proposal represents a huge step forward in shaping public opinion for lifting the crude oil export ban, DEPA officials acknowledge there is more work to be done.

    “The key to securing Congressional action to lift the export ban is maintaining pressure on the political process,” said DEPA Chairman Harold Hamm. “There are many competing agendas in Washington. The industry must maintain constant pressure in the system, positioning lifting the export ban as a key factor in America’s economic, foreign policy and national security strength.”

    Lifting the export ban has economic and national security benefits for the United States, Hamm said. 

    Since October 2013, DEPA has led a highly-targeted campaign aimed at strategic Committee Chairs and congressional members on each of these public policy issues, said DEPA Executive Director Pete Regan. Since then, DEPA has been at the center of the battle to open free markets for the export of crude oil.

    “DEPA’s recognition of this issue may have seemed ahead of its time, but nobody is questioning it now,” Regan said.

    With DEPA’s support, exactly one year ago, April 1, 2014, US Congressman Michael McCaul (R-TX) introduced a bill to repeal the ban on exporting crude oil. Ten days later, then-current Senate Energy Committee Chair Mary Landrieu (D-LA) and Ranking Member Murkowski sent a letter to the Department of Energy to study the implications of ending the ban on US crude oil exports.

    The ultimate findings of that study, as published in the November 2014 IHS Energy report, Lifting the Crude Oil Export Ban Benefits US Consumers, were that lifting restrictions on crude oil exports would result in an increase of real household disposable income because of an investment-led expansion in economic activity and a lower unemployment rate.

    “We used that study and others to focus on explaining how the export ban affects US independents,” Hamm said. “Primarily by putting our current energy renaissance at risk.”

    He said the current lack of ability for US producers to compete on the global market “effectively eliminates American oil and gas development, drives oil and gas development overseas and eradicates high-paying, middle class US jobs.”

    Additionally, by creating and perpetuating a short-supply cycle in America, the export ban drives gasoline prices up and hits US national security by ensuring OPEC dominance and the power of hostile nations, Hamm said.

    “We expected this bipartisan legislation after the Congressional recess, and we are encouraging all of our industry partners to get behind the ‘Energy Supply and Distribution Act of 2015’ to continue the heavy lift of eradicating the US crude export ban,” Regan said.

    ###

    About the Domestic Energy Producers Alliance: DEPA is a coalition of US independent producers, oilfield service companies, and 13 state and national oil and natural gas trade associations made up of 10,000 members and more than 10 million American royalty owners. DEPA supports the bipartisan legislation to lift the harmful crude export ban, an enforcement tool remnant of President Nixon’s failed 1970s policy on price controls.


  • 12
    May

    Export ban supports foreign interests, Hamm says

    Mike Soraghan

    E&E EnergyWire

    Continental Resources Inc. founder Harold Hamm said the country's crude oil export ban plays into a "deliberate, calculated takeover of American refining" by foreign countries and companies.

    Those foreign interests have converted US-located refineries to process their heavy, sour crude, he said. And the export ban blocks US producers' access to refineries abroad that can process their light, sweet crude.

    "Basically, they took over America's refining capacity without firing a shot," Hamm said in an interview with EnergyWire. "It would be like farmers raising cotton that couldn't get their cotton ginned." [more]

  • 15
    April

    The US needs to end its ban on crude oil exports

    Lisa Murkowski, John McCain & Bob Corker

    Foreign Policy

    A crisis flares in the Middle East. Russian military forces subjugate a nation desperate for freedom. Europe searches for new sources of energy.

    Such was the situation in 1956. War raged over the Suez Canal, blocking shipping for half a year, and a crucial pipeline from the Persian Gulf to the Mediterranean Sea was sabotaged. Meanwhile, the Hungarian people rose up against their communist oppressors in October, precipitating a Soviet invasion days later. The Cold War turned hot and, as winter approached, American allies in Europe lost access to Middle Eastern oil.

    President Dwight Eisenhower’s response was swift and resolute. Domestic oil production skyrocketed and shipments from the Gulf Coast stabilized world markets during this critical period, all to relieve what the press termed “Europe’s oil famine.” A study by the Rand Corporation in 1962 noted, “Both economically and politically (as was seen at the time of Suez), Europe’s essential energy needs involve the United States and other Western Hemisphere suppliers.” By July 1957, the crisis was over. American energy had come to the rescue.

    Today, US allies are once again under threat and, once again, our nation’s resource abundance places us in a position to render vital assistance. [full story]

  • 02
    April

    Why the export ban makes American oil cheap for refiners

    Jim Krane and Anna Mikulska

    Forbes

    With crude oil supply in flood stage and prices downshifting, America’s political elite still finds itself unable to lift the outdated ban on US exports of crude oil.

    Ditching the export ban, Baker Institute research shows, would accomplish at least two worthy goals. First, it would raise domestic prices of US crude oil, providing relief to the struggling US shale patch. Second, allowing US crude to reach global markets might reduce international crude prices, which would, in turn, reduce gasoline prices.

    This unlikely sounding scenario is possible because the ban has led to a glut of un-exportable light crude that is sitting in storage tanks around America. Since it cannot reach international markets and U.S. refining sector is not configured to run this much light crude oil, American crude sells at prices well below those of comparable international grades. [more]