House expected to pass bill axing U.S. oil export ban, future uncertain

[Eugene]

Source: Reuters

Politics | Fri Oct 9, 2015 11:11am EDT

House expected to pass bill axing U.S. oil export ban, future uncertain

WASHINGTON

A bill to repeal the U.S. oil export ban was expected to pass the House of Representatives on Friday, but faces an uncertain future after a veto threat by President Barack Obama.

U.S. representatives on Friday morning debated the bill, sponsored by Joe Barton a Republican of Texas, and were slated to vote on it later in the day.

Oil policy analyst Kevin Book of ClearView Energy Partners expected the bill to pass the Republican-led House, but said it was unlikely to win the 290 votes necessary to override a White House veto.

Congress passed the ban in 1975 after the Arab oil embargo caused snaking lines at gas stations and fears of global oil shortages.

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Read more: http://www.reuters.com/article/2015/10/09/us-usa-oilexports-house-idUSKCN0S31TG20151009

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1. It's better for oil prices to rise

Cheap oil keeps alternatives expensive and when gas is expensive more people think about the cost to fill up the tank.

Cheap oil helps to ship products long distances vs making things closer to home - cheap oil is sold as a jobs deal when its just the opposite.

The oil export ban causes other inefficiencies in shipping crude to refineries.