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Energy Tomorrow Blog

Lifting Oil Export Ban a Win for Economy, Security

crude oil exports  economic growth  oil production  jobs  us energy security 

Jack Gerard

Jack Gerard
Posted December 22, 2015

Almost exactly 40 years after it was instated, the ban on crude exports has been lifted. A relic of ‘70s-era energy scarcity, the ban makes no sense now that the United States leads the world in oil and natural gas production. Numerous studies have found that lifting the ban will help put downward pressure on gas prices, create jobs, grow our economy and lower our trade deficit.

Lifting the ban is also a security win for the U.S. and our allies. With the administration’s push to allow Iran to export its oil to the global market, it’s time for U.S. producers to have the same opportunity. Our allies around the world are eager to reduce their reliance on energy from less friendly nations.

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Time to Get Policy Right on Oil Exports

crude oil exports  congress  economic growth  oil production  white house 

Mark Green

Mark Green
Posted December 15, 2015

That Congress soon may act to end the United States’ 40-year-old ban on domestic crude oil exports is signaled in the number of reports and posts on exports-related themes.

The Wall Street Journal has a report that talk of lifting the export ban is narrowing the difference between U.S. and global crude prices. The Council on Foreign Relations’ Michael Levi has this post discussing the impact of an exports deal on markets, the recent climate deal and geopolitics. National Journal reports on the legislative horse-trading some think could be part of lifting the exports ban. And there’s more.

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Denying Access to Energy Denies Safety, Prosperity, Opportunity

access  oil and natural gas development  offshore oil production  alaska  regulation  us energy security 

Mark Green

Mark Green
Posted December 11, 2015

Then there’s this from Alaska: Falling oil revenues have the governor in that energy-rich state asking his legislature to plug a $3.5 billion hole in the state budget by imposing a small income tax (Alaska hasn’t had one for 35 years), other tax hikes, budget cuts and a reduction in the annual dividend Alaskans get from the state’s Permanent Fund.

Now, it might not bother you much that Alaskans soon could be paying higher taxes. But there’s another story playing out in Alaska and other places that should trouble all Americans: Access to U.S. energy is being restricted – by policy and regulation – in ways that could imperil America’s energy revolution and the generational opportunities that are being created by that revolution.

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U.S. Oil Exports and the Global Market

crude oil exports  crude markets  oil production  economic growth  us energy security 

Mark Green

Mark Green
Posted December 9, 2015

The U.S. shale energy revolution is a game-changer – for the United States and the world’s energy balance. The U.S. has become the No. 1 producer of oil and natural gas, resulting from a domestic energy renaissance driven by advanced hydraulic fracturing and horizontal drilling – fracking. And the positive impacts are all around us.

U.S. crude imports are down, and American energy self-sufficiency is up. An America that’s more energy self-sufficient is more secure. Meanwhile, the global crude market is better supplied and more stable – thanks to the availability of crude that would have been imported to the U.S. Domestic pump prices reflect this well-supplied market. At the same time, greater use of natural gas has increased each American household’s disposable income by $1,200, and IHS says the benefit will grow to more than $3,500 in 2025. Thanks, fracking.

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The Oil Exports Conversation

crude oil exports  domestic oil production  security  economic growth  jobs 

Mark Green

Mark Green
Posted December 7, 2015

t’s good that Congress appears to be talking seriously about ending the United States’ four-decades-old ban on crude oil exports. Reports say Democrats and Republicans are discussing a deal that would include lifting the export ban – though it’s unclear what a specific deal would look like. “We need to have a conversation” about oil exports, Senate Minority Whip Dick Durbin told Politico. “We need to have a fair negotiation.”

Of course, we’ve been having a conversation about the merits of lifting the exports ban for some time. And it starts with this: Every major study on the issue has found that exporting U.S. crude oil would be good for America and Americans. The benefits range from those to consumers, to the economy, to American security to domestic energy production. According to the research, ending the outdated ban would positively impact all of the above.

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Continuing the Offshore Safety Discussion

offshore safety  oil and natural gas production  bsee  regulation  safe operations 

Mark Green

Mark Green
Posted December 2, 2015

A couple of important takeaways from this week’s Capitol Hill hearing on a proposed federal well control rule for offshore drilling:

First, offshore drilling is safer today than it has ever been – for the Gulf of Mexico, Alaska and Pacific regions. In coordination with federal regulators, industry has improved the safety of offshore development – in terms of safety systems management, prevention and response – while advancing the nation’s energy security through continued offshore oil and natural gas production.

This is seen in the approximately 275 API exploration and production standards that include offshore operations, more than 100 of which have been incorporated into federal regulation. 

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A High-Energy Thanksgiving

affordable energy  american energy security  co2 emissions  consumer products  oil and natural gas production  economic benefits  gasoline prices  energy exports 

Mark Green

Mark Green
Posted November 25, 2015

Thanksgiving is about taking a moment to give thanks for our good fortune. A festival of gratitude with food, family and friends – maybe with a little football thrown in.  So here's a list of some of the things that we’re thankful for this holiday season, from A to Z.

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U.S. Energy Exports and Market Engagement

crude oil exports  energy markets  domestic energy production  economic growth  jobs  trade  lng exports 

Mark Green

Mark Green
Posted November 18, 2015

Interesting analysis on energy independence in the Wall Street Journal by Columbia University’s Jason Bordoff, a former energy adviser to President Obama. It’s a good thing the United States isn’t energy independent, Bordoff writes. That’ll get your attention, right?

As Bordoff explains, “energy independence” is a dusty concept from the 1970s and 80s, after policymakers made it a goal to end U.S. reliance on global crude suppliers after the 1973 oil embargo.  It didn’t happen. To the contrary, U.S. imports steadily climbed in the 1990s and 2000s before the significant increases in domestic production, thanks to abundant American shale energy reserves and advanced hydraulic fracturing.

Now, with U.S. energy output surging, the inclination among some is to keep that energy here at home by maintaining the 1970s-era ban on crude oil exports, believing that it lessens others’ ability to disrupt our oil supplies. But Bordoff writes that an “isolationist” approach on energy misunderstands the reality that today’s global energy market is highly integrated and that the interconnectedness of the market has helped the U.S. compensate for supply disruptions here at home and overseas. “Free trade in a highly integrated global energy market made us more secure,” he writes.

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Energy and Bipartisanship

energy policy  election  energy exports  oil and natural gas development  security  production  vote4energy 

Mark Green

Mark Green
Posted November 3, 2015

API assembled a great panel of election/campaign experts to discuss how Election 2016 is shaping up and which issues will be salient when Americans vote a year from now. As for predicting the key issues 12 months into the future, the experts said what honest experts say: Who knows for sure? Yet, Public Opinion Strategies’ Glen Bolger no doubt was in the ballpark:

“I don’t think any one issue is going to dominate the election. … You’re going to have a number of different issues debated: foreign policy and national security being up there, the economy and jobs … Energy certainly can play a role in that, just given that it is a component of jobs and the economy. It’s a component of our national security, it’s a component of our foreign policy. I think energy will be an issue, but the question is how big.”

Great point. Energy and advancing the right policies for American energy certainly run through a number of the things Americans say they care about most: jobs, a thriving economy and safety for themselves and their families. That’s what comes through the results of a new Harris Poll of 2,800 registered voters: energy, energy, energy.

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Oil Exports and America’s New Era of Energy Opportunity

crude oil exports  oil production  security  refinieries  consumer products  economic growth  jobs 

Mark Green

Mark Green
Posted November 2, 2015

When the Energy Policy and Conservation Act was signed into law by President Gerald Ford in 1975, Ford said it would put the United States “solidly on the road to energy independence.” The legislation included a ban on most exports of domestically produced crude oil. For many, shutting in domestic oil production – effectively self-sanctioning a vital U.S. industrial sector from the global marketplace – seemed like a good idea. At the time.

The country had been roiled by an oil embargo imposed by exporting states in response to U.S. support for Israel during the 1973 Yom Kippur War. Americans learned the meaning of oil shock – long lines for gasoline, odd/even day rationing schedules, shortages and rising prices. The Federal Reserve’s Michael Corbett writes that the embargo nearly quadrupled the price of a barrel of oil to $11.65 – quaintly low in 2015 dollars, but economically crippling four decades ago.

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