API: EIA report shows it’s time to act on crude exports
Zachary Cikanek | 202.682.8114 | Cikanekz@api.org
WASHINGTON, October 30, 2014 ─ Today’s report from the Energy Information Administration (EIA) confirms that lifting trade restrictions on U.S. crude oil could benefit U.S. consumers and promote America’s economic growth.
“Trade restrictions on crude oil are a relic of the 1970s and only limit our growth as an energy superpower,” said Erik Milito, API director of upstream and industry operations. “Numerous other studies have reached the same conclusions, but the EIA’s analysis carries great weight with policymakers, and it demonstrates that restrictions on U.S. exports do nothing to advantage gasoline consumers here at home. In fact, by growing exports, we can create more U.S. jobs, promote greater U.S. energy production, and put downward pressure on fuel costs – a conclusion the Government Accountability Office (GAO) emphasized in a report last week.”
While offering no specific predictions, the EIA report explains that higher U.S. production – prompted by exports – could increase global oil supplies and reduce the global price of crude, which is “more important” than domestic crude oil prices in determining U.S. gasoline costs.
“We’ve all seen what the energy revolution has done to boost the economy and reshape global markets, and exports are key to continuing that growth,” said Milito. “The case is clear. It’s time for policymakers to harness the economic advantages of free trade by lifting outdated and counterproductive limits on U.S. crude exports.”
API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 600 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 20 million Americans.