The United States’ legal framework and regulatory processes surrounding crude oil exports can only be described as unclear. The purpose of the 1975 bill that created the ban on crude oil exports was to protect domestic industry from energy shortages during a time of falling domestic crude oil production. Today, the country is experiencing a surge of domestic crude oil production which is drastically different than the energy shortage during the 1970s. Domestic consumers are not benefiting from the export ban and U.S. producers may be negatively affected by it.
In June 2014, the federal government allowed two Texas companies to start exporting condensate, and this ruling has been interpreted as a sign that the administration may be amending its stance. The U.S. president has wide executive powers to alter or even eliminate the restrictions, but the ultimate decision about lifting the ban may come down to the president or Congress. In order to understand the current crude oil export ban and the limited exceptions, it is necessary to understand the definition of “crude oil.”
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