Congress Lifts 40-Year-Old Ban on Crude Oil Exports

Navigant comments on factors behind the decision

Since the 1970s, the United States has barred exports of crude oil, but now a Congressional decision has put the option back on the table. Initially enacted by President Gerald Ford to protect American markets from price shocks, U.S. oil companies have more recently been campaigning for access to overseas market, especially as oil prices decline and foreign production increases.

"Saudi Arabia's been the big boy on the block and the ad-hoc leader of the OPEC nations,” Terry Manning, director of Navigant’s oil and gas team, told U.S. News & World Report. “OPEC raises its volume, price goes down a little bit. OPEC decreases its volume, prices go up.”

According to the article, despite the competitive challenges, U.S. producers proved resilient as price floors continued to drop by finding ways operate more efficiently.

 

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