Why Is It Illegal to Export American Oil?

Why Is It Illegal to Export American Oil?

Why Is It Illegal to Export American Oil?

Some companies want the ban dropped.

Copy Link
Facebook
X (Twitter)
Bluesky
Pocket
Email

When the United States supported Israel in the 1973 Yom Kippur War, its oil supply from the United Arab Emirates, Saudi Arabia, Kuwait, Libya and Algeria was cut off. US oil prices tripled.

To guard against future disruptions, Congress passed the Energy Policy and Conservation Act of 1975, dictating that US crude could no longer be exported, with a few exceptions.

This ban on domestic crude exports still stands today—though maybe not for much longer. In May of this year, US Energy Secretary Ernest Moniz announced that lifting the ban is “under consideration.” In April, it was discussed in a House subcommittee hearing on terrorism, nonproliferation and trade. In March, politicians suggested that the United States export oil to Ukraine to replace the oil that Russia threatened to withhold during the regional crisis. In 2012, Adam Sieminski, administrator of the US Energy Information Administration, said, “I’m not sure we should just automatically assume that [exporting crude oil] would be bad.”

This political change of heart reflects the interests of oil companies as their crude-oil transportation networks begin to spread across North America. US refineries have not been able to keep pace with the recent boom in extraction, so oil companies are pushing to export that oil to foreign refineries. Some crude already goes to Canada, an exception to the 1975 export ban. A new study by Oil Change International shows that in North Dakota alone, oil shipments by rail rose to 800,000 barrels per day (from nearly zero) between 2009 and early 2014.

This uptick is nothing compared with the breakneck pace of extraction should the export ban fall. Lifting the ban could turn the United States and Canada’s 188 (and counting) oil-by-rail terminals into global US crude export facilities. Fifty-one new rail terminals are now under construction or being planned. But citizens are starting to notice: Portland has already put a stay on accepting terminal proposals.

Become a Sustaining Donor This September

Between the reemergence of right-wing red-baiting and Donald Trump’s use of the chilling National Security Presidential Memorandum–7 to criminalize left political organizing, we’re seeing McCarthyism reborn before our eyes.

This assault on democracy cannot be ignored or wished away. Resisting it requires bravery in the face of threats and repression, a steadfast commitment to the truth, and the unwavering belief that we can—and will—overcome this darkness.

We must have an independent media that sets the record straight, unearths corruption and abuses of power, and advances a politics of justice and dignity for all if we’re to win this fight.

That’s why I’m writing to you today. This September, The Nation needs to add 100 monthly donors to sustain our progressive journalism. Your contribution makes the next investigative report, the next truth-speaking column, and the next pathbreaking essay all possible. 

I hope you’ll support our work with a recurring donation today. If you donate $10 or more a month, we’ll send you a brand new “Hands Off the Free Press!” sticker to recognise your commitment to our cause. Please, donate today. 

Onward,

Katrina vanden Heuvel
Editor and Publisher, The Nation

Ad Policy
x