Should Oil Sourced From the U.S. Stay in the U.S.? (H.R. 1190)

What is H.R. 1190?

(Updated July 19, 2017)

H.R. 1190 aims to restrict the sale of U.S. sourced oil to U.S. refiners and consumers. 

Under this bill, the Secretary of the Interior can only lease Federal land for oil extraction from companies that agree to limit oil sales to the U.S. This restriction to the nation's borders would also include any product made from the oil — not just gasoline, but other things like waxes and lubricants.

The President would still have the power to waive this requirement if having these restrictions in place:

• lead to an increased dependence on foreign oil from countries that are unstable or politically hostile; 

• would raise costs for U.S. oil refiners and U.S. consumers;

• violate international agreements or the Constitution.

The bill comes with a ten-year sunset. Two years before its expiration, the Secretary of the Interior and the Comptroller General must issue a report to Congress on H.R. 1190’s impact.

Argument in favor

Not only can the U.S. save a bunch of money by keeping the supply and sale of oil domestic — ditching a dependence on foreign oil could do wonders for international diplomacy.

Argument opposed

The way oil is extracted from the earth in the U.S. is hideously bad for the environment and is a health threat to us and future generations. Instead of making oil more accessible we need to cut our dependency.

Impact

Anyone who drives or relies on vehicles that need gasoline, people in the oil industry including drillers, refiners, and shippers, the Secretary of the Interior, the Comptroller General, and foreign oil industries.

Cost of H.R. 1190

A CBO cost estimate is unavailable.

Additional Info

In Depth:

Since the 1970s, the U.S. has maintained a ban on oil exports, with the exception of oil shipped to Canada. The ban was put in place during the 1973 oil crisis during the Arab oil embargo that happened as a consequence of U.S. support for Israel. The embargo caused oil prices in the U.S. to increase at exponential rates.

More info:

Now in late 2014, the U.S. is experiencing something of a domestic oil boom. This has helped cause gas prices in the U.S. to plummet. In turn, gas companies are filling out fewer permits for new drilling projects.

Some critics have called on the Federal government to end the oil ban, claiming that the U.S. could maintain energy security while making money off of its natural resources. According to the Council on Foreign Relations, legalizing oil exports could generate $15 billion in revenue. Mining company BHP Billiton recently announced its plans to sell Texas-produced oil overseas without official approval.

Much of the domestic gas extracted in the U.S. comes from hydraulic fracturing, or fracking, a process by which fluids are injected into the ground to crack rock, which provides easier access to oil. The practice has been banned in Vermont and New York amid environmental safety concerns.

Media:

Sponsoring Rep. Ed Markey (D-MA) Press Release

Boston Globe

Brookings Institute

Debate with Rep. Markey and Former Treasury Secretary Larry Summers