CME Group Lobbies for Energy Companies to Repeal US Crude Oil Export Ban

Strategic Insights -

The Chicago Mercantile Exchange (CME) Group, the largest exchange operator, has deployed its significant lobbying resources to influence the US government to repeal the four-decade-old ban on most US crude oil exports. The ban, which has been in place since 1975, has been a contentious issue due to surging shale production and low oil prices. CME's move to engage on this issue is a rare foray outside derivatives and tax policy for the company's lobbyists. Energy companies such as BP, Chevron, ExxonMobil, Hess, and Royal Dutch Shell are also lobbying for the repeal, citing the need for freer trade to narrow the gap between US and international crude benchmarks and potentially increase production.

Key Takeaways:

  • CME Group has spent $460,000 on federal lobbying in the second quarter, including work on a House bill to repeal the ban on US crude oil exports.
  • The bill, sponsored by Rep. Joe Barton (R-TX), advanced through a House subcommittee last week.
  • Energy companies including BP, Chevron, ExxonMobil, Hess, and Royal Dutch Shell have also registered to lobby on the bill.
  • CME spends over $2 million annually on lobbying and contributed $826,750 to federal candidates in the 2014 US election cycle.
  • CME Group's executive chairman, Terry Duffy, testified in support of repealing the ban on Capitol Hill in May, stating that the company cares about issues important to its market users in industries such as energy and finance.

Statistics:

  • $460,000: The amount CME Group spent on federal lobbying in the second quarter, including work on the House bill to repeal the ban on US crude oil exports.
  • $2,000,000: The annual amount CME Group spends on lobbying.
  • $826,750: The amount CME Group's political action committee contributed to federal candidates in the 2014 US election cycle.
  • 1975: The year the US ban on most crude oil exports was implemented.
  • 2014: The year CME Group's political action committee contributed $826,750 to federal candidates.

Sources:

  • CME Group filing with the US Senate
  • Center for Responsive Politics (CRP) data on CME Group's lobbying spending and campaign contributions
  • CRP's database on money in US politics.