Lifting Ban on Oil Exports Seen Tied Up by Debate

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Jan. 30 (Bloomberg) -- Senate Energy Committee Chairman Ron Wyden said the U.S. must weigh the costs to consumers before ending the 40-year ban on crude oil exports and he predicted a prolonged debate. Megan Hughes reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Debate stand?

It is important to point out there is no legislation on this just yet.

Today's senate hearing is asking the question, should the export ban be lifted, and it has positive -- our full supporters like lisa murkowski from alaska, companies like exxon mobil, the u.s. chamber of commerce -- their argument, you send more crude abroad and it will bring the world gas prices, and it will mean savings for oil producers here in the united states, but they are having problems with refinery capacity, specifically the light, sweet crude oil from north dakota, and they say that the ban is outdated.

Here is billionaire harold hamm of continental resources who we heard from today.

The world has drastically changed since the opec oil embargo.

Even then, the band was symbolic as we had no oil exports.

Consumers would benefit from lifting these restrictions that inhibit the export of crude oil induced in the u.s.. there is a split in the oil industry.

For refiners, it helps for the crude to stay in the u.s., they turn it into gasoline, and is allowed to be exported.

We heard testimony from your presented of altai, who is a huge consumer, but also a refiner.

We believe strongly that the ban on u.s. crude exports is good policy, and lifting export limits would come at the expense of the american consumer, who would pay more for gasoline, heating oil, and more for the price of an airline ticket.

We have seen an abundance of crude has been bringing down prices at the pump, down 10% since march, even though global prices have been around $107 a barrel.

Barclays estimates if you remove the ban, it would cost motorists as much as $10 million a year in higher prices.

Megan hughes, thank you.

We had a quick break to take.

This text has been automatically generated. It may not be 100% accurate.


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