Industry News

Budget bill set to pass due to oil and energy compromise

December 17, 2015


            The omnibus budget bill, released Tuesday, December 15, 2015, will lift the ban of U.S. crude oil exports. The original restrictions were implemented in 1975 following the Arab oil embargo. It directed the President to create rules that would eliminate crude oil exports, with the exception of specific national security situations. However, the recent elimination of Iranian oil restrictions has led many to call the 40-year-old ban into question. 
            With the fear of a government shutdown looming, Congress was able to reach a bipartisan compromise Republicans agreed to extend a series of expired or renewable energy tax breaks. The bill now states that there will be a five year extension of the investment tax credit for solar energy, as well as a retroactive extension of the production tax credit for wind until 2019. In return, the Democrats agreed to lift the ban on crude oil exports, with certain economic or national security exceptions. The White House is expected to support the passage of this bill due to the new energy provisions, in spite of their opposition to the oil ban lift.
            The budget bill will fund the government through September 2016.

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