U.S. Crude Oil Export Policy

The unconventional energy revolution in the United States over the last several years has brought about a new era of energy abundance in the United States. Crude oil production has increased significantly, from 5 million barrels per day in 2008 to over 9 million barrels per day today. In 2013, the United States surpassed Saudi Arabia to become the largest producer of liquid fuels, including oil and refined petroleum products, in the world. The United States is also on the cusp of exporting Liquefied Natural Gas. It is not, however, a major exporter of crude oil. This is not for lack of potential and available supplies. Rather, it is due to laws that restrict the export of this commodity and that were put in place in response to the OPEC oil embargo of the 1970s. Crude oil export restrictions create distortions in the domestic oil market and pose a risk to U.S. oil production growth. They stifle economic growth and also hamper the ability of U.S. foreign policy and national security leaders to seize strategic benefits presented by the energy revolution.