ABSTRACT

U.S. Crude Oil Export Policy: Background and Considerations [March 26, 2014]   [open pdf - 685KB]

"During an era of oil price controls and following the 1973 Organization of Arab Petroleum Exporting Countries oil embargo, Congress passed the Energy Policy and Conservation Act of 1975 (EPCA), which directs the President 'to promulgate a rule prohibiting the export of crude oil' produced in the United States. Crude oil export restrictions are codified in the Export Administration Regulations administered by the Bureau of Industry and Security (BIS)--a Commerce Department agency. The President has some powers to allow certain crude oil exports if an exemption is determined to be in the national interest. In 2009, a decades-long U.S. oil production decline was reversed due to the application of advanced drilling and extraction technologies to produce tight oil. The Energy Information Administration (EIA) 2014 reference case projects that total U.S. crude production will be 9.6 million barrels per day by 2019--up from 7.7 million in 2013. Nearly all of this growth is expected to come from tight oil production. This anticipated growth is resulting in calls to lift or otherwise ease U.S. crude oil export restrictions. However, crude oil imports are projected to range from 6 million to nearly 8 million barrels per day for the period out to 2040. This apparent disconnect between import needs and the desire to export can be explained when considering the following: (1) geographic location of tight oil, (2) tight oil quality characteristics, (3) refinery configurations, (4) oil transportation network, and (5) price discounts in different regions."

Report Number:
CRS Report for Congress, R43442
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Publisher:
Date:
2014-03-26
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Copyright:
Public Domain
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pdf
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application/pdf
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