Senators ask feds to walk back oil export guidance

Two Senate Democrats are asking the Commerce Department to rescind its guidance allowing some light oil to be exported.

Sen. Robert Menendez (N.J.) and Ed Markey (Mass.), who have both fought hard in the past against any attempt to lift the ban on crude oil exports, called Commerce’s December guidance a “decision to weaken the oil export ban.”

{mosads}“This change in policy has led to increased oil exports and those increased exports have increased the price of American oil relative to the world price of oil,” they wrote in a letter to Commerce Secretary Penny Pritzker released Tuesday.

“Americans have enjoyed a discount for years, and, for the sake of consumers and the American worker, we ask again that you reevaluate this change in policy now that it is negatively impacting our economy.”

In December, Commerce posted a list of “frequently asked questions” on its website, saying that existing laws and regulations allow oil condensate to be exported as long as it is lightly processed.

While Commerce did not present the guidance as a policy change, opponents and supporters of lifting the four-decade-old ban on crude oil exports took it as a significant step toward allowing exports.

Menendez and Markey said that allowing exports could increase domestic oil prices, which would lead to higher expenses for businesses and consumers.

“We understand that both American and world oil prices have fallen dramatically in recent months, but we believe we should vigorously preserve the oil export ban and ensure American oil prices are as low as possible and not pursue policies that will narrow the gap between American oil prices and world oil prices,” they said.