WASHINGTON, April 30 (UPI) -- A coalition of U.S. refineries said repealing a 40-year-old ban on crude oil exports will harm energy security at a time when oil markets are in flux.
A group of refineries united under the banner of the Consumers and Refiners for Domestic Energy, or CRUDE, coalition said the long-standing ban on exporting domestic crude oil is protecting the U.S. energy sector during fluid market conditions.
"Repealing our long-standing energy independence policy is tantamount to imposing sanctions on consumers," group Executive Director Jay Hauck said in an emailed statement. "Lower fuel prices are broadly benefiting U.S. consumers [by more than] $700 per household."
The ban was put in place following a decision from Arab members of the Organization of Petroleum Exporting Countries to close the tap on the United States in response to the latter's support for Israel.
Those in the exploration and production side of the U.S. energy sector argue the ban is outdated in an era when domestic shale is leaving storage facilities overflowing with domestic crude oil.
John Hess, chief executive officer of Hess Corp., wrote in a weekend editorial in The Wall Street Journal domestic crude oil is overflowing at storage facilities because it's "literally trapped" in the U.S. market.
On Wednesday, U.S. Sens. Lisa Murkowski, R-Alaska, and Heidi Heitkamp, D-N.D., introduced an amendment to an Iranian nuclear act that would end the crude oil export ban.
"Lifting the ban on U.S. exports would let American oil compete with Iranian oil, reduce Iranian revenue from oil exports, send a strong signal to U.S. allies that still depend on Iranian oil that alternative supplies are available, and lower global oil prices," Murkowski said in a statement.
The CRUDE group, however, said lifting the ban would increase the leverage of OPEC, of which Iran is a member.
OPEC's decision in November to keep oil production steady pushed an already oversupplied market over the edge, sending key crude oil indices below the $50 market and into a bear market. Should sanctions pressure on Iran ease, more of its oil would find its way to the global oil market.
