Murkowski to push bill to lift crude export ban

Senate Energy and Natural Resources Committee chairman Lisa Murkowski (R-Alaska) plans to introduce a bill to repeal the US' decades-old restrictions on US crude exports.

Murkowski, appearing at the IHS CERAWeek energy conference in Houston today, said she hopes to have a broad-based energy bill on the Senate floor this summer. But she was not willing to commit to include the crude export language in that bill.

"It is probably just a bit too early to know just yet," Murkowski said.

While Murkowski, who has been the most vocal advocate for lifting the export controls in Congress, said the nuclear negotiations with Iran present a new argument for fully removing the restrictions. If the US and other global parties can reach a comprehensive accord with Iran by 30 June, additional Iranian oil may begin to flow onto world markets as early as late this year.

The US, in contrast, has a general prohibition on exports of domestic crude. "This equates to a sanctions regime against ourselves," Murkowski said. "We should not lift the sanctions on Iranian oil while we are keeping sanctions on American oil," Murkowski said. "It makes no sense."

Murkowski argued the restrictions not only hurt US oil producers but consumers as well, echoing an argument made by a number of analyses that have concluded lifting the controls would provide some relief at the gasoline pump.

US independent ConocoPhillips chief executive Ryan Lance, who has emerged as a leading industry proponent of revamping US crude export laws, joined Murkowski at the conference. Lance said US exports could incentivize up to 3mn b/d of additional US oil production.

Murkowski said she has not heard anyone in the administration threaten to veto legislation that would lift the export restrictions.

Murkowski said President Barack Obama could use his discretion now to ease the restrictions for US' trading partners and strategic allies, rather than wait for Congress to act.

In February, Murkowski and other senators called on the US Commerce Department to approve a request from Mexico's state-owned Pemex to swap 100,000 b/d of US light oil in exchange for Mexican heavy crude. Pemex has been seeking to import US light crude to blend with domestically produced oil supplying three of its six refineries.

Murkowski said today the US could exempt Mexico from the restrictions just as it has done for Canada.

"But, really, you have to ask the question, ‘Why just stop there,'" Murkowksi said. Murkowski pointed to NATO members such as Italy, which relies on Libya for a portion of its oil, and Poland, which is heavily dependent on Russia. She wants to export to the refining complex in the Netherlands, as well as to Asian trading partners such as South Korea, Japan and India.

Murkowski said she would be willing to countenance a smaller bill focused on, perhaps, just Mexico.

Murkowski said the biggest opposition to lifting the ban comes from lawmakers fearful gasoline prices will rise after restrictions are eased and will pay a political price.

Some have argued that a bill to export crude must be paired with changes to the Jones Act, which requires that cargoes moving from one US port to another must be carried on US-flagged vessels manned by US crews. Murkowski said it is "way early to be talking about that."

While noting that she intends to push an energy bill forward and have a "rational conversation" about energy policy. "There is no guarantee of that in the current political climate, but we must make that attempt. We must make the effort because the cause is so important."

Lance, who has been talking to lawmakers and White House officials about the export controls, said it is important to push the oil export issue this year, since little movement is likely during the presidential race in 2016.

But Lance conceded: "I recognize it's a long hill to climb."

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