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Energy Tomorrow Blog

The Crude Oil Exports Vote

crude oil exports  crude oil production  economic growth  jobs 

Mark Green

Mark Green
Posted October 7, 2015

The U.S. House has an important vote scheduled for Friday on legislation that would lift the 1970s-era ban on domestic crude oil exports. It’s an historic chance for U.S. policymakers to affirm that America’s energy picture is fundamentally and dramatically improved from where it was four decades ago – thanks to surging domestic production that has made the United States the world’s No. 1 producer of oil and natural gas.

It boils down to this: A vote for the bill would be a vote for U.S. jobseconomic growthtrade benefits  and strengthened American security. It would be a vote for U.S. consumers and American global competitiveness. It would be a vote for America’s friends abroad, who see U.S. energy as a global supply diversifier and stabilizer. As one ally said earlier this year, with U.S. oil exports the “world itself will be a … safer place.”

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The Crude Oil Exports Vote

crude oil exports  domestic oil production  economic growth  jobs  Energy Security 

Mark Green

Mark Green
Posted October 7, 2015

The U.S. House has an important vote scheduled for Friday on legislation that would lift the 1970s-era ban on domestic crude oil exports. It’s an historic chance for U.S. policymakers to affirm that America’s energy picture is fundamentally and dramatically improved from where it was four decades ago – thanks to surging domestic production that has made the United States the world’s No. 1 producer of oil and natural gas.

It boils down to this: A vote for the bill would be a vote for U.S. jobs, economic growth, trade benefits  and strengthened American security. It would be a vote for U.S. consumers and American global competitiveness. It would be a vote for America’s friends abroad, who see U.S. energy as a global supply diversifier and stabilizer. As one ally said earlier this year, with U.S. oil exports the “world itself will be a … safer place.”

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Crude Oil Exports, Imports and Fig Leaves

analysis  energy exports  crude oil  oil production  economic benefits 

Mark Green

Mark Green
Posted September 18, 2015

First, they said it was about protecting consumers. Opponents of lifting the U.S. ban on crude oil exports claimed that allowing domestic crude to reach the global market would negatively impact Americans at the gas pump. But every major economic study looking at the issue has blown away that fig leaf.

The studies – from Brookings Energy Security Initiative to IHS to the U.S. Energy Information Administration (EIA) – estimate that U.S. oil exports would put downward pressure on U.S. gasoline prices, benefiting American consumers.

There have been other fig leaves.

Exports opponents say America shouldn’t export crude as long as our country is an oil importer. They also say the U.S. should isolate its crude from the global marketplace for national security reasons and that for those reasons oil should be treated differently than other U.S. commodities that are freely traded. These, too, have been blown away by the facts and sound economic analysis.

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Momentum for Crude Oil Exports

analysis  energy exports  crude oil  congress  american petroleum institute  domestic oil production 

Mark Green

Mark Green
Posted September 8, 2015

It looks like last week’s U.S. Energy Information Administration (EIA) report pointing out the benefits of exporting domestic crude oil is pushing Washington policymakers closer to ending the 1970s-era ban on exports. McClatcheyDC reports:

Momentum is growing to lift the 40-year ban on exporting U.S. oil to foreign nations, with a federal report concluding that doing so wouldn’t raise gasoline prices. Congress could vote on proposals when it returns from its summer vacation after Labor Day. Rep. Joe Barton, R-Texas, said he has “green lights” from the House Republican leadership, and is confident the House will pass a bill on ending the ban this fall. “It is up to this Congress to examine the issue and move towards a better policy that reflects the reality of America today, not the America of 1975,” Barton said in an email.

It may be that EIA’s report marks “critical mass” in terms of how much research backing crude exports is needed to move the needle in Washington – saying, as a number of previous studies projected – that exporting U.S. oil won’t negatively affect consumers and will spur domestic production. EIA’s report addresses the White House’s chief concern, about the impact of a policy change on U.S. energy prices. And this week an important House subcommittee is scheduled to vote on legislation that would lift the export ban.  

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EIA and Crude Oil Exports

analysis  energy exports  crude oil  eia  economic benefits  oil production  american petroleum institute 

Mark Green

Mark Green
Posted September 1, 2015

Some quick points from the new crude oil exports study from the U.S. Energy Information Administration (EIA):

First, like a series of other studies before it, EIA’s study finds that lifting America’s 1970s-era ban on exporting domestic crude oil would not negatively affect U.S. consumers. EIA says:

Petroleum product prices in the United States, including gasoline prices, would be either unchanged or slightly reduced by the removal of current restrictions on crude oil exports.

EIA projects that ending the export ban – which would allow shut-in domestic crude to access global crude oil markets – would spur more domestic production. Then the global supply/demand would become “looser,” putting downward pressure on global crude prices, resulting in “lower petroleum product prices for U.S. consumers.

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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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U.S. Oil Exports: ‘The World Will Be a Safer Place’

analysis  energy exports  crude oil  production  economic benefits  american petroleum institute 

Mark Green

Mark Green
Posted July 10, 2015

The compelling case for lifting America’s decades-old ban on exporting domestic crude oil is multi-faceted.

There's the economic case, with NERA Economic Consulting estimated that lifting the ban could add $200 billion to $1.8 trillion to the U.S. economy between now and 2039. There's the case for consumers, with a variety of studies indicating that lifting the ban could lower prices at the fuel pump from 1.7 cents per gallon to up to 12 cents per gallon. There's the foreign policy case and the way home-grown crude oil could affect global relationships, helping allies and potentially neutralizing the ability of adversaries to use energy as a diplomatic weapon. Then there's the energy case. Domestic production, spurred by greater access to global crude markets, could grow by 2.1 million barrels per day to 4.3 million barrels per day over levels under the status quo, according to NERA.  

Certainly, each of these was argued again at a pair of Capitol Hill hearings, one by the House Agriculture Committee (video) and another by the Energy and Commerce Committee’s Energy and Power Subcommittee  (video).

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America: Energy Superpower

news  oil and natural gas development  us energy  bp  oil production  energy exports  ethanol  climate change  regulation 

Mark Green

Mark Green
Posted June 10, 2015

BloombergBusiness The U.S. has taken Russia’s crown as the biggest oil and natural-gas producer in a demonstration of the seismic shifts in the world energy landscape emanating from America’s shale fields.

U.S. oil production (green line in chart, left) rose to a record last year, gaining 1.6 million barrels a day, according to BP Plc’s Statistical Review of World Energy released on Wednesday. Gas output also climbed, putting America ahead of Russia as a producer of the hydrocarbons combined.

The data showing the U.S.’s emergence as the top driller confirms a trend that’s helped the world’s largest economy reduce imports, caused a slump in global energy prices and shifted the country’s foreign policy priorities.

“We are truly witnessing a changing of the guard of global energy suppliers,” BP Chief Economist Spencer Dale said in a presentation. “The implications of the shale revolution for the U.S. are profound.”

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Strengthening America’s Energy Potential

news  energy exports  crude oil production  offshore energy development  ozone proposal  hydraulic fracturing  innovation  technology  alaska  arctic 

Mark Green

Mark Green
Posted May 15, 2015

Bloomberg BNA: The chairman of the Senate Energy and Natural Resources Committee said May 14 that she is inclined to include standalone legislation that would end the 40-year ban on the export of domestic crude oil as part of a broader energy package the committee is drafting.

“I’d like to have it in there,” Sen. Lisa Murkowski (R-Alaska) told reporters. “It just makes sense in there, as part of the bigger, broader energy updating our architecture.”

The bill, the Energy Supply and Distribution Act of 2015 (S. 1312), released May 13, is scheduled to be the subject of a June 4 hearing on “energy accountability and reform,” along with other bills that could end up in the broader energy package, which is expected to be unveiled later this summer.

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Energy Investments and Production Growth

news  oil imports  domestic oil production  shale energy  fracking  liquefied natural gas  arctic  marcellus  utica shale  efficiency 

Mark Green

Mark Green
Posted May 5, 2015

Energy Outlook Blog (Geoff Styles): The US Energy Information Administration's latest Annual Energy Outlook features the key finding that the US is on track to reduce its net energy imports to essentially zero by 2030, if not sooner. That might seem surprising, in light of the recent collapse of oil prices and the resulting significant slowdown in drilling. EIA has covered that base, as well, in a side-case in which oil prices remain under $80 per barrel through 2040, and net imports bottom out at around 5% of total energy demand. Either way, this is as close to true US energy independence as I ever expected to see.

It wasn't that many years ago that such an outcome seemed ludicrously unattainable. I recall patiently explaining to various audiences that we simply couldn't drill our way to energy independence. The forecast of self-sufficiency that EIA has assembled depends on a lot more than just drilling, but without the development of previously inaccessible oil and gas resources through advanced drilling technology and hydraulic fracturing, a.k.a. "fracking", it couldn't be made at all. The growing contributions of various renewables are still dwarfed by oil and natural gas, for now.

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