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Energy Tomorrow Blog

Oil Exports, Iran and U.S. Global Competitiveness

analysis  energy exports  crude oil  economic growth  domestic oil production  gasoline prices  Jack Gerard 

Mark Green

Mark Green
Posted August 14, 2015

We’ve put up a number of posts recently that argue for lifting the United States’ decades-old ban on exporting domestic crude oil – citing sound economic, trade and security reasons. Underlying them all is this: As an energy superpower, America will see more benefits here at home, be more secure and help make the world safer if U.S. crude is allowed to trade freely in the global marketplace.

Now, there is a compelling, market reason for urgency in ending the export ban – a self-sanctioning relic of the 1970s that hinders U.S. global competitiveness while impeding domestic energy development and economic growth. That would be the impacts on global crude markets if/when Iran resumes exporting oil under the proposed nuclear agreement the White House is advancing.

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Energizing Nebraska

analysis  nebraska  biofuels  economy and energy  greenhouse gas emission reduction  income  ozone regulations  pricewaterhousecoopers  wood mackenzie 

Reid Porter

Reid Porter
Posted August 14, 2015

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Nebraska. We started the series with Virginia on June 29 and continued with Montana, Iowa, Alabama and Arizona this week. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with Nebraska, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

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Energizing Arizona

analysis  arizona  biofuels  energy  epa  greenhouse gas emission reduction  ozone regulations  pricewaterhousecoopers  wood mackenzie 

Reid Porter

Reid Porter
Posted August 13, 2015

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Arizona. We started the series with Virginia on June 29 and reviewed Montana, Iowa and Alabama earlier this week. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with Arizona, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

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The Growing Crude Oil Exports Chorus

analysis  energy exports  crude oil  economic growth  gasoline prices 

Mark Green

Mark Green
Posted August 12, 2015

Add MIT professor and former CIA director John Deutch to the bipartisan list of those calling for an end to the ban on U.S. crude oil exports.

Deutch, a National Petroleum Council member who served in a number of posts during the Carter, Clinton and Obama administrations, argues in the Wall Street Journal that exporting domestic crude would grow U.S. jobs and increase American influence in world oil markets. Deutch writes:

The bottom line is that the U.S. has the potential to export large amounts of oil and refined products.

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Energizing Alabama

analysis  alabama  economy and energy  epa  income  ozone regulations  pricewaterhousecoopers  wood mackenzie 

Reid Porter

Reid Porter
Posted August 12, 2015

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Alabama. We started the series with Virginia on June 29 and reviewed Montana and Iowa to begin this week. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with Alabama, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

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Energy Exports: Putting U.S. in the Driver’s Seat on Trade

analysis  energy exports  trade  crude oil  liquefied natural gas  lng  economic growth  oil and natural gas production  american petroleum institute 

Mark Green

Mark Green
Posted August 11, 2015

The U.S. Commerce Department’s recent mid-year trade report illustrates how surging domestic oil and natural gas production is helping our economy – and strongly suggests what increased domestic output could do if U.S. crude oil and liquefied natural gas (LNG) had unhindered access to global markets.

According to Commerce, the U.S. trade deficit among petroleum and petroleum products fell 56.1 percent the first six months of this year compared to the first six months of 2014 (exhibit 9). That growth helped hold the total U.S. year-over-year trade balance steady, even as the trade deficit in non-petroleum products increased 23.1 percent. API Chief Economist John Felmy:

“Despite a very competitive global market, the U.S. energy revolution continues to push our trade balance in a positive direction. Oil imports remain on the decline, and strong exports of petroleum and refined products are creating new opportunities for America to bring wealth and jobs back to U.S. shores.”

For that trend to continue, though, the United States must pursue energy trading opportunities with the same vigor it pursues trade in other areas. A 1970s-era ban on crude oil exports should be lifted, and LNG export projects should be approved by the government so that domestic producers have every chance to access global markets.

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Energizing Montana

analysis  montana  crude oil exports  energy  gasoline prices  income  lng  pricewaterhousecoopers  wood mackenzie  trade 

Reid Porter

Reid Porter
Posted August 10, 2015

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Montana. We started our focus on the state level with Virginia on June 29. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with Montana, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

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Energizing South Dakota

analysis  south dakota  biofuels  e15  energy  ethanol  income  renewable fuel standard  pricewaterhousecoopers  wood mackenzie 

Reid Porter

Reid Porter
Posted August 6, 2015

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with South Dakota. We started the series with Virginia on June 29 and reviewed Florida, Kansas and Maryland earlier this week. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with South Dakota, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

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Energizing Maryland

analysis  maryland  crude oil exports  income  energy  gasoline prices  lng  pricewaterhousecoopers  trade  wood mackenzie 

Reid Porter

Reid Porter
Posted August 5, 2015

Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Maryland. We started this week with Florida and Kansas; the series began on June 29 with Virginia. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.

As we can see with Maryland, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.

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Compelling Economics Support Oil Exports

analysis  energy exports  crude oil  domestic production  economic growth 

Mark Green

Mark Green
Posted August 4, 2015

Something we hear frequently (and too often from people who should know better), is that as long as the United States is an oil importer it shouldn’t export domestic crude. It sounds logical and certainly makes for a good headline. But the idea ignores reality and sound economic analysis.

A quick skim of government data on U.S. trade shows that goods imported into the United States are often goods that also are exported from the United States. The fact is that oil is traded globally, and the ebbs and flows of global supply affect us here in the U.S. Bruce Everett, who teaches oil market economics at Tufts University, explained in a recent article for Politico:

… it’s certainly true that the US will still require imported oil for the foreseeable future to meet our needs.  But the implication here is that exporting US crude oil would increase our import needs and therefore undermine national security. And that’s not how the oil market works. The US has an open economy, and American consumers pay world prices for oil – just as they do for wheat, corn, copper, gold and other internationally traded commodities.  Crude oil is sold in a single, integrated global market.  If the world oil price spikes, the US will suffer, along with everyone else, to the extent we rely on the global market for imports.  But exporting some domestically produced oil would not affect this equation.

Energy isolationism isn’t in the United States’ best interest – economically or from a security standpoint. While some argue that shutting in U.S. crude oil is better for America, that kind of faulty thinking ignores the way free markets work – and can work to America’s benefit if we lift the ban on exporting domestic crude.

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