U.S. Crude Oil Export Policy: Background and Considerations

Oil_drop

Here is a copy of this doc by Congressional Research Service. It is quite in depth. Here is an excerpt from the summary, and the table of contents:

“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.”

Contents
Introduction ……………………………………………………………………………………………………………………. 1
Background …………………………………………………………………………………………………………………….. 3
Legal and Regulatory Context …………………………………………………………………………………………. 5
The Energy Policy and Conservation Act ………………………………………………………………………. 5
The Export Administration Act and the International Emergency Economic Powers
Act ………………………………………………………………………………………………………………………… 6
Other Relevant Federal Statutes …………………………………………………………………………………… 7
Section 201 of P.L. 104-58: Exports of Alaskan North Slope Oil ………………………………… 7
MLA Limitation on Export of Crude Oil Transported via Federal Right-of-Way ………….. 7
Limitation on Export of Oil from the Naval Petroleum Reserves ………………………………… 8
Limitation on Export of Crude Oil Produced from the Outer Continental Shelf ……………. 8
The Role of the Bureau of Industry and Security (BIS) …………………………………………………… 9
Crude Oil Export Motivations …………………………………………………………………………………………. 9
Tight Oil Production Has Increased ……………………………………………………………………………. 10
U.S. Refinery Configurations …………………………………………………………………………………….. 13
Infrastructure Challenges …………………………………………………………………………………………… 15
Crude Oil Producer Prices …………………………………………………………………………………………. 17
Considerations for Congress ………………………………………………………………………………………….. 18
Price Effects …………………………………………………………………………………………………………….. 18
Crude Oil Prices …………………………………………………………………………………………………. 18
Product Prices …………………………………………………………………………………………………….. 20
Energy Security and Geopolitics ………………………………………………………………………………… 20
International Trade Policy …………………………………………………………………………………………. 23
Environment ……………………………………………………………………………………………………………. 23
Oil Transportation ………………………………………………………………………………………………. 24
Oil Extraction …………………………………………………………………………………………………….. 25
Climate Change ………………………………………………………………………………………………….. 25
Policy Options ………………………………………………………………………………………………………………. 26
Lift Existing Restrictions …………………………………………………………………………………………… 26
Maintain Current Restrictions ……………………………………………………………………………………. 27
Modify Restrictions

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About Scott

Live next to Chevron refinery. Lots of petroleum consultants in the area. I am interested in learning more about the industry. Also, interested in finance, business, and investing in world markets.
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