U.S. Senate Panel Votes to Lift Oil Export Ban

By Timothy Gardner and Valerie Volcovici

WASHINGTON, July 30 (Reuters) – The U.S. Senate Energy Committee on Thursday narrowly handed a invoice to raise a 40-year-old ban on the export of crude oil, however the measure faces an uphill battle in getting handed by the total Senate.

The invoice to permit the United States to export oil and increase state revenue-sharing for offshore oil and fuel drilling handed alongside occasion strains by a vote of 12-10.

It was the second important step in two days for advocates of lifting the ban: Republican House Speaker John Boehner introduced his help on Wednesday for repealing the legislation.

But Congressional Democrats stay reluctant to reverse the ban, citing a concern it will result in larger fuel costs. Democratic help is seen as essential to getting President Barack Obama to signal any laws allowing crude exports.

Senate Energy Committee Chair Lisa Murkowski, a Republican senator from Alaska, has been a long-time advocate for lifting the ban, which she mentioned was outdated because of the U.S. drilling growth that has propelled the nation to vie with Russia and Saudi Arabia because the world’s largest oil producer.

In addition to unlocking crude oil exports, Murkowski’s invoice would pace up exports of liquefied pure fuel and be sure that states which have offshore oil and fuel growth get their share of federal revenues.

Combining the revenues measure with repeal of the exports ban was an try by Murkowski to achieve extra Democratic votes.

Murkowski and Democratic Senator Mark Warner, of Virginia, launched an Atlantic Council report on Wednesday referred to as “Empowering America: How energy abundance can strengthen U.S. global leadership” that recommending lifting the ban, to permit the drilling growth to be an asset in overseas coverage. (http://www.atlanticcouncil.org/publications/reviews/empowering-america-how-energy-abundance-can-strengthen-us-global-leadership)

It was Warner’s first sign that he’s open to lifting the ban. In addition, Senator Joe Manchin, a West Virginia Democrat, who’s on the power committee, mentioned on Thursday he helps repealing the restriction, although he didn’t vote for the invoice.

Murkowski might want to absolutely persuade many extra Democrats to vote for the invoice for it to have an opportunity of advancing. One Democrat mentioned he would do the whole lot inside his energy to quash a measure within the laws. Senator Bill Nelson, of Florida, mentioned he would block the invoice, which permits oil rigs to function as shut as 50 miles (80 km) to a lot of his state’s coast.

The invoice will transfer to the Senate flooring after the August break.

Industry teams welcomed the invoice’s passage and mentioned it will be a boon to the U.S. economic system and nationwide safety.

“Free trade in energy will allow America to harness the full economic opportunities created by our energy revolution,” mentioned the American Petroleum Institute’s high lobbyist, Louis Finkel.

The Senate power committee additionally voted 18-4 to again a broader power invoice, which helps effectivity and streamlines allowing for pure fuel pipelines. (Reporting by Timothy Gardner and Valerie Volcovici; Editing by James Dalgleish and Richard Chang)