The CRUDE Act modifies the conditions for restricting crude oil exports, requiring a joint report from multiple secretaries to the President and Congress, a presidential declaration of a national emergency, and formal notification in the Federal Register to trigger export restrictions.
Jodey Arrington
Representative
TX-19
The CRUDE Act amends existing legislation to change the conditions under which crude oil exports can be restricted. It requires a joint report from the Secretaries of Defense, Energy, and Commerce to the President and Congress demonstrating that crude oil exports have caused sustained supply shortages, price increases, and adverse employment effects in the U.S. Only after this report and a presidential declaration of a national emergency can export restrictions be triggered.
CRUDE Act: New Rules Make It Harder to Stop Oil Exports, Even If Prices Spike
The "Continuing Robust and Uninhibited Drilling and Exporting Act," or CRUDE Act, changes the rules for exporting U.S. crude oil. Basically, it makes it way harder to put the brakes on oil exports, even if those exports start causing problems here at home. This is a change from the Consolidated Appropriations Act of 2016.
Exporting Unleashed
The CRUDE Act is all about keeping the oil flowing out of the country. The big change is that it significantly raises the bar for when the government can restrict crude oil exports. Before, there were already some checks, but now? It's a whole different ballgame.
Now, to even consider restricting exports, the Secretaries of Defense, Energy, and Commerce have to jointly report to the President and Congress. And it's not enough for them to just say, "Hey, we think there might be a problem." They have to prove that crude oil exports have caused two very specific things:
- Sustained, serious oil shortages in the U.S., or prices way above the global market, and they must prove that it is directly caused by U.S. crude oil exports (SEC. 2).
- These shortages or price hikes have caused (or will likely cause) "sustained material adverse employment effects" in the U.S. (SEC. 2).
Even if both of those happen, it is still not enough. The President has to actually declare a national emergency and formally announce it in the Federal Register. That's a big political step, and it's not something Presidents do lightly.
Real-World Impact: Higher Prices at the Pump?
So, what does this mean for regular folks? Let's say a global event happens, and oil prices everywhere start going up. Normally, the U.S. might limit exports to keep some oil here and keep prices somewhat stable. Under the CRUDE Act, that becomes much harder. Oil companies could keep exporting, potentially driving up prices at your local gas station. Think of it like this: if a farmer sells all their best crops to other countries, the price of groceries in their own town is going to go up. The provision makes it harder to have that local supply.
The "sustained material adverse employment effects" part is also tricky. What exactly does that mean? How many jobs have to be lost before it's considered "material"? The bill doesn't define it, leaving a lot of room for interpretation. This could mean that even if people are losing jobs because of high energy costs, it might not be enough to trigger the restrictions.
The Big Picture
The CRUDE Act is designed to prioritize oil exports. It adds layers of bureaucracy and a major political hurdle (the national emergency declaration) to restricting those exports. While it could boost profits for oil companies, it also raises serious questions about how it might impact American consumers and workers if oil supplies get tight or prices spike. This bill is designed to make it harder to control the exports of oil.