New Study: U.S. Exports can save American consumers up to $6.6 billion annually by 2020
WASHINGTON, January 29, 2014 ─ Preliminary results from a new study on exports of crude oil show that consumers can save money at the pump, according to API Vice President for Regulatory and Economic Policy Kyle Isakower.
“This report shows what economists have been saying all along, that exports are good for consumers,” said Isakower. “Reversing the past mind set of energy scarcity to one of abundance means more investment in America. More investment in America leads to more American jobs, more revenue to the government, a lower trade deficit and increased security.”
Preliminary analysis from the API-commissioned study by ICF International suggests that if crude exports were allowed:
- U.S. crude exports could mean an additional $70 billion in U.S. upstream investments by 2020, leading to an increase in U.S. oil production by as much as 500,000 barrels per day.
- Putting this additional U.S. oil on the world market could reduce crude prices by as much as a dollar per barrel potentially leading to $6.6 billion in annual savings for American consumers by 2020.
“It’s undeniable that the American energy revolution has rendered our current export policies obsolete.” Isakower said. “Allowing exports will ensure that U.S. production remains strong in a way that supports American consumers. Opening new markets for American production is a benefit to the economy.”
API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 580 members – including large integrated companies, exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms – provide most of the nation’s energy and are backed by a growing grassroots movement of more than 20 million Americans. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy, delivers $85 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.