American Oil and Gas Reporter - January 2016 - 28

break; since Congress had adjourned for
the remainder of 2015, the legislation died
in a process colloquially known as a
"pocket veto."
Naatz also notes environmentalists' opposition to ending the export ban. Press
accounts quote Sierra Club Executive Director Michael Brune saying that U.S. oil
exports will "send American jobs overseas, rip up more iconic landscapes to
pump oil that nobody needs, and increase carbon pollution that is driving the
climate crisis."
Meanwhile, House Speaker Paul Ryan,
R-Wi., has been quoted saying the benefits associated with clearing the way for
U.S. oil exports is "like having 100 Keystone pipelines."
Not long after the omnibus bill passed,
DEPA's Hamm pointed to a significant symbol. He noted that on Dec. 22, the price for
West Texas Intermediate crude surpassed
that of Brent for the first time since November 2010. "WTI is trading better than
Brent, reflecting the willingness of the world
to pay for the exceptional quality of U.S.
light sweet crude," Hamm remarked.
"When the OPEC strategy to drive down
prices and secure market share was enacted by flooding the global market, in ensured
the U.S. crude export ban would be lifted."

The nuclear accord with Iran also
swayed some minds, Naatz suggests.
"When we would point out that Iran
would be able to export its oil, but the United States would not, a lot of people on
Capitol Hill agreed the administration had
no leg to stand on. Regardless of whether
the Iran deal was good for the United
States, it provided focus. These were not
international sanctions. This was something the United States had imposed on itself. That really got a lot of people in Congress to look closer."
Other Items
As for other portions of the omnibus
bill specifically pertinent to U.S. independent oil and gas producers, Naatz notes the
legislation also contains language to block
the Department of Interior from finalizing
a set of rules relating to activities that affect the greater sage grouse and its habitat. "DOI already has announced it is not
going to pursue that," he allows. "This simply confirms that policy."
Naatz says the bill also includes report
language that expresses disapproval of the
Bureau of Land Management's management of federal lease sales. "Only 22 of the
34 sales the agency was supposed to
hold this year have taken place," he points

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28 THE AMERICAN OIL & GAS REPORTER

out. "BLM is not releasing lease sale statistics for federal lands. It is supposed to
that quarterly, but only has been doing so
annually. The report language says it
needs to get back to being quarterly."
The legislation also includes a couple
sections in the tax extenders package, that,
while not major policy developments,
Naatz assesses, are still worthwhile.
"One extends the modification of increased expensing limitations for small
businesses, which is good for small producers," he reports. "Second is an extension and modification of bonus depreciation. It is not directly aimed at oil and
gas, but many of our members can make
use of that."
❒

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American Oil and Gas Reporter - January 2016

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