US Senate Committee on Energy and Natural Resources has passed a bill supporting removal of the 40 year old ban for crude oil exports.

The export policy which received a 12-10 vote from the committee, however, needs a full Senate approval to be signed into a law.

Congressional Democrats however were against the lifting of the ban, reports Reuters, fearing that it would increase the gas prices.

"Free trade in energy will allow America to harness the full economic opportunities created by our energy revolution."

Besides opening up gateways for crude oil exports, the bill is also expected to accelerate exports of liquefied natural gas from the country.

The bill would be forwarded to the Senate floor for full approval after the August break.

Industry leaders in the country have welcomed the bill as they expect it to turn US into an energy superpower.

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American Petroleum Institute Executive Vice President Louis Finkel said: "Free trade in energy will allow America to harness the full economic opportunities created by our energy revolution.

"America is now the world’s largest natural gas producer, and our LNG exports will promote stronger domestic energy production, create more American jobs, and protect the security of the US and its allies.

"In terms of oil, study after study has shown that the outdated export ban only harms America’s ability to compete with other suppliers, like Iran and Russia.

"It’s ironic that the US would strike a deal to allow Iranian crude onto the global market while refusing to give the same opportunity to American producers.

"Lifting the ban will put downward pressure on fuel costs, create jobs, and strengthen our position as a global energy superpower."

The committee has also voted 18:4 in support of a broader energy bill, which includes provision for workforce training in the energy sector and streamlines permitting process for natural gas pipelines.