VINACHEM

Industry groups praised the passage of a spending bill on Friday that has resulted in the end of a 40-year ban on the export of US crude oil.

President Barack Obama signed the legislation into law late Friday afternoon, after the spending bill passed majority votes in both the House of Representatives and the Senate.

The ban on crude exports followed the 1973 Arab-Israeli War and a boycott by Arab oil-producing nations on selling crude to the US.

Earlier on Friday, the US House voted 316-113 in favour of a $1,100bn spending bill, along with a separate $622bn tax package. The bill included provisions to lift the crude-oil export ban.

A piece of legislation combining the two bills was then delivered to the Senate for a vote, where it passed 65-33.

Dallas-headquartered oil and gas exploration company Pioneer praised both Congress and the president for lifting the crude export ban.

“Congress and the president have shown their commitment to free trade and have leveled the playing field for US operators, allowing us to compete freely in the world market,” said Scott Sheffield, Pioneer chairman and CEO.

“While current commodity prices may limit exports in the short run, the long-term benefits are significant.”

The Railroad Commission of Texas, which regulates the oil and gas industry in the state, also welcomed the removal of the ban, with several commissioners expressing their approval.

“This ban is a relic of a bygone era that stifles competition and the potential for American job creation. Lifting the ban will finally allow American energy producers to compete on a level playing field in the international marketplace,” said commission chairman David Porter.

“This is a victory for both the Texas and US economies.”

Producers for American Crude Oil Exports (PACE) executive director George Baker said it was a historic day.

“Lifting the ban on crude oil exports will protect and create US jobs, strengthen our economy and benefit consumers,” Baker said.

“Now that we have leveled the playing field, the United States finally has an opportunity to compete and realise our nation’s full potential as a global energy super power.”

The signing of the bill ends months of negotiations and has averted the possibility of a government shutdown, just as Congress finishes up for the year.

Previously, the White House had expressed opposition to lifting the crude export ban, saying the move was not needed at the time.