H.R. 1850: Continuing Robust and Uninhibited Drilling and Exporting Act

This bill, titled the Continuing Robust and Uninhibited Drilling and Exporting Act (CRUDE Act), aims to revise the current authority that the President has regarding the imposition of export licensing requirements and other restrictions on the export of crude oil from the United States.

Key Provisions

• Modification of License Requirements: The bill amends existing laws to limit the conditions under which the federal government can impose export licensing or restrictions on crude oil exports.
• New Criteria for Export Restrictions: The government can only impose export restrictions if:
  • The Secretary of Defense, Secretary of Energy, and Secretary of Commerce jointly determine that crude oil exports have caused significant supply shortages or elevated prices in the United States.
  • These shortages or price increases must be directly linked to the exports of U.S. crude oil.
  • Additionally, it must be shown that these issues have caused or are likely to cause adverse effects on employment in the United States.
  • A national emergency must be declared by the President based on these findings, and this declaration must be formally documented in the Federal Register.
• Removal of Additional Provisions: The bill also seeks to remove certain existing provisions that may currently allow for broader export restrictions.

The intent of the bill is to ensure more consistent and unrestricted access to crude oil exports by reducing the federal government's ability to intervene except under specific and stringent criteria. By setting high thresholds for when export licensing can be applied, the bill emphasizes a pro-export stance for U.S. crude oil.

Relevant Companies

• XOM - Exxon Mobil Corporation may be impacted as it is a significant player in crude oil production and exports.
• COP - ConocoPhillips, being another major oil producer, could benefit from increased export opportunities.
• PSX - Phillips 66 might see changes in its export strategy and operations depending on the new regulations on crude oil exports.