Oil And Gas Industry : The United States Government Restricted The Export Of Domestically Produced Crude Oil

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In 1973, the United States government restricted the export of domestically produced crude oil. At the time, this was largely regarded as a sound decision. Not only was domestic production in a decline, but the global political climate was fundamentally inhospitable. However, in recent years, the oil and gas industry has exploded into a huge upswing, due in no small part to the evolving technologies surrounding hydraulic fracturing and horizontal drilling. Between 2009 and 2013, crude oil production in the United States increased by roughly 2.1 million barrels per day and, according to ICF estimates, is projected to increase another 3.2 million barrels per day through 2020 (ICF International 2014). This has led to a high profile discussion regarding the removal of the export ban which peaked in October of this year when President Barack Obama stood firm against repealing the ban, even threatening to veto the bill completely, despite the House of Representatives voting to pass it. With domestic oil and gas production at an all-time high, continuing with the ban makes little economic sense, and this report will further explain the belief behind why the ban should be repealed and why it would make a positive impact on independent exploration and production companies. When the export ban was put into place, its main goal was to protect domestic reserves as well as protect domestic consumers from any price shocks in the market. Now, the situation is so different that the ban

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