Bill Text: NJ AR271 | 2014-2015 | Regular Session | Introduced
Bill Title: Supports U.S. ban on crude oil exports.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2015-12-14 - Introduced, Referred to Assembly Agriculture and Natural Resources Committee [AR271 Detail]
Download: New_Jersey-2014-AR271-Introduced.html
Sponsored by:
Assemblyman TIM EUSTACE
District 38 (Bergen and Passaic)
Assemblyman REED GUSCIORA
District 15 (Hunterdon and Mercer)
SYNOPSIS
Supports US ban on crude oil exports.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution supporting the United States ban on crude oil exports.
Whereas, In 1973 the Arab members of the Organization of the Petroleum Exporting Countries (OPEC) imposed an oil embargo on the United States as retaliation for supporting Israel and as a means to gain leverage in peace negotiations following the Yom Kippur War; and
Whereas, Faced with a dependence on oil consumption combined with a minimal domestic oil reserve, the United States experienced skyrocketing oil prices and gasoline shortages that crippled the economy; and
Whereas, Despite a lift of the embargo in 1974, President Gerald Ford signed into law on December 22, 1975 the "Energy Policy and Conservation Act" or EPCA, banning most United States exports of crude oil; and
Whereas, The goal of the EPCA is to protect the United States from the volatile and unpredictable global crude oil market by building a domestic reserve of oil through the establishment of the Strategic Petroleum Reserve (SPR); and
Whereas, Despite the 700 million barrels of oil currently in the SPR, the United States has yet to achieve the goal of energy independence, and imports seven million barrels of foreign oil a day, including over three million per day from OPEC countries in the Middle East; and
Whereas, Members of the United States Congress are discussing lifting the ban on crude oil exports despite the fact that such an action would threaten America's national security, and President Obama has promised to veto it; and
Whereas, Depleting domestic oil stockpiles and increasing dependency on foreign oil, potentially from unstable nations that are hostile towards the country, places the United States in a vulnerable position in the face of a domestic or global energy crisis; and
Whereas, Without a ban in place, the United States would again be at the will of OPEC, who as of 2014 controlled approximately 80 percent of the world's proven oil reserves, with two-thirds located in the Middle East; and
Whereas, Studies have shown that maintaining the ban on crude oil exports also holds domestic fuel prices low, which benefits American consumers and businesses, leading to economic growth and job creation within the United States; and
Whereas, For almost 40 years the United States has banned crude oil exports and the ban continues to be a necessary provision to protect America's national security and interests; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House supports the United States ban on crude oil exports as a necessary provision to protect America's national security and interests from the volatile and unpredictable global crude oil market.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President of the United States, the Majority Leader and Minority Leader of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and to each member of the United States Congress elected from the State of New Jersey.
STATEMENT
The "Energy Policy and Conservation Act" or EPCA, signed in 1975 by President Gerald Ford, initiated the United States ban on crude oil exports. The EPCA was enacted following the 1973 Arab oil embargo that left the nation's economy crippled due to skyrocketing oil prices and gasoline shortages. The embargo was imposed by Arab members of the Organization of the Petroleum Exporting Countries (OPEC) as retaliation for supporting Israel and as a means to gain leverage in peace negotiations following the Yom Kippur War. The goal of the EPCA is to protect the United States from the volatile and unpredictable global crude oil market by building a domestic reserve of oil through the establishment of the Strategic Petroleum Reserve (SPR).
Currently the SPR holds 700 million barrels of oil, yet the United States still imports seven million barrels of foreign oil a day, including over three million per day from OPEC countries in the Middle East. Despite the country lacking energy independence, members of the United States Congress are discussing lifting the ban on crude oil exports. This action would threaten America's national security, and President Obama has promised to veto it.
Depleting domestic oil stockpiles and increasing the dependency on foreign oil, potentially from unstable nations that are hostile towards the country, places the United States in a vulnerable position in the face of a domestic or global energy crisis. Furthermore, without a ban in place, the United States would again be at the will of OPEC, who as of 2014 controlled approximately 80 percent of the world's proven oil reserves, with two-thirds located in the Middle East.
In addition to national security issues, studies have shown that maintaining the ban on crude oil exports also benefits the nation's economy by keeping domestic fuel prices low. Low fuel prices provide financial relief to American consumers and businesses, and can lead to economic growth and job creation.
For almost 40 years the United States has banned crude oil exports, which has allowed for growth of a domestic oil reserve in the SPR and a decreased reliance on foreign oil imports. In the current geopolitical environment, the ban continues to be a necessary provision to protect the country from the uncertainties of the global crude oil market.
