An influential group of Senators from both the Republican and Democratic parties have introduced a legislation in US Senate to end the 1975 ban on crude oil export, which could benefit gas and oil deficient countries like India.
Introduced by Senators Lisa Murkowski and Heidi Heitkamp along with 11 of their colleagues, the Energy Supply and Distribution Act of 2015 would modernise federal energy policy by ending the outdated ban on crude oil exports.
"America's energy landscape has changed dramatically since the export ban was put in place in the 1970s. We have moved from energy scarcity to energy abundance. Unfortunately, our energy policies have not kept pace," Murkowski said.
"This legislation builds from bipartisan ideas, linking energy security and infrastructure to expanding exports and helping our allies. Our nation has an opportunity to embrace its role as a global energy powerhouse, sending a signal to the world that we are open for business and will stand by our friends in need," the senator said.
"The 1970s-era ban on exporting American crude oil is as outdated as the typewriters on which the policy was written. It's past time for an upgrade," said Heitkamp.
"Lifting the decades-old law banning US producers from selling their product on the world market will help produce more energy, grow our economy and create more jobs, both in North Dakota and across the nation," Senator John Hoeven said.
In addition, according to the Energy Information Administration, removing the ban will increase the supply of oil on the world market, bringing the price of crude down globally, which will bring down the price of gasoline and other fuels for consumers, he argued.
Senator John Barrasso said that ending the ban on exporting crude oil will allow American producers to add to global oil supplies and help stabilise the world oil market.
Welcoming the Senate legislation, Congressman Joe Barton said he would introduce a similar bill in the House of Representatives.
"Lifting this prohibition will create jobs and promote economic growth in our nation, while at the same time strengthening our strategic position in the world and lowering gas prices here at home," Barton said.
"It is up to this Congress to examine the issue and move towards a better policy that reflects the reality of America today, not the America of 1975. Ending the ban is a win, win, win-internationally, domestically and economically," Barton said.
