Congressman Brad Sherman Unveils the Petroleum Price Reduction Act – Prohibits Exports When Oil Over $70 Per Barrel

Washington, D.C. – Congressman Brad Sherman (D-CA) unveiled the Petroleum Price Reduction Act - legislation to prohibit the export of petroleum products during periods of high oil prices to help keep prices at the pump for gasoline, diesel and other petroleum-based fuels in check. 

Sherman’s Petroleum Price Reduction Act would require that the president ban the export of any petroleum product (though not natural gas) if the closing price of West Texas Intermediate crude exceeds $70 per barrel for three consecutive days, five out of the last 10 days, or $80 per barrel at any time.  The legislation would allow the president to waive the prohibition and continue sales to specific countries to support U.S. national security objectives.

“America produces more oil than we use and is a net exporter of both petroleum and refined products. Next year we will increase production, and are slated to produce more oil than at any time in history,” Sherman said.  “Moving off fossil fuels over the next several years, as we are attempting to do now, is the key element in our energy plan.  That said, we should still take action to put downward pressure on prices.

Sherman continued: “Providing more oil in the U.S. won’t lower the price at the pump for Americans if producers are free to export.”

The ban on the export of petroleum would be removed once prices come down and have stabilized at a price below $70 per barrel for several days. The United States had a total ban on the export of oil for many years until 2015, when the policy was reversed, and prohibiting the export of oil was actually banned. 

“It’s time for our export policy to be responsive to oil prices, and there is a middle ground between total ban and no ban,” Sherman said.  “This bill will create downward pressure on crude and refined products for the benefit of American consumers.”     

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