ICYMI: API President and CEO Mike Sommers featured on S&P Global Platts’ Capitol Crude podcast
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Highlighting key issues in advance of CERAWeek
WASHINGTON, March 8, 2019 - Please see below for highlights of the discussion, available online here.
Surging U.S. Oil Production Is Here To Stay [0:55-1:30]
[1:02- 1:29] “We are going to continue to grow U.S. oil and natural gas production to record levels. Many of our producing membership really does see that we are going to continue to be the number one producer of oil and natural gas for years to come and that’s to the great advantage to American consumers of course. It’s also in our view a great advantage to the world. Trust me, we’ve talked to a number of our partners overseas and they’d prefer to be getting their energy resources from the United States.”
U.S. Becoming A Net Oil Exporter Is Strengthening American Foreign Policy, But More Infrastructure Is Needed [1:30-3:51]
[2:57-3:51] “We’re working with the administration and others to make sure that we get the transportation infrastructure in place so that we can get that crude to these refineries on the Gulf Coast. A lot of that – because of pipeline constraints and the lack of the Keystone XL Pipeline from being built because of bureaucracy and court challenges – a lot of that will be done by rail. We’ve been able to take a very firm stand in this country against the oppressive and tyrannical regime in Venezuela. We need to retain and continue to retain that flexibility as we challenge regimes that are treating their people poorly. Canadian heavy crude is an incredible source for the American consumer and we want to make sure that we continue to have access to that market, but the biggest constraint for us right now of course is pipeline infrastructure and that’s going to continue to be a key priority for this association going forward.”
Opposition To NOPEC [3:54-5:57]
[6:14-6:52] “The biggest thing that can help constrain OPEC is continued American production and so what you’ve seen over the course of the last 12 years is a shale revolution, an energy revolution that has occurred in this country… So we don’t think that this is productive legislation – it’s populist legislation that we think could do great harm to our foreign policy, so we’re working with members of Congress and the administration to make sure that they’re educated on what the implications would be of NOPEC.”
The Trade War’s Tariffs & Quotas Are Unintended Constraints On America’s Energy Leadership [5:57-7:52]
[6:14-6:52] “We have seen significant constraints that have occurred as a consequence of tariffs and quotas that have occurred as a consequence of this trade war. So, we’re working very closely with the administration and with lawmakers to educate them on what this has meant for American consumers. That is harming our key priority which is pipeline infrastructure to be built to support the continued energy boom in the United States.”
[7:15-7:51] “China specifically, we do know that China is not a great trade partner whether it is this industry or others. I think the administration is taking that issue on in a way that makes sense for the American consumer and American businesses. But, we can’t allow the unintended consequences to be so great that it’s harming energy production in the United States. Energy production continues to be, I think, the rock upon which this economy is built, and we need to make sure our trading policies make sense for this industry going forward.”
USMCA: “Before It’s A Global [Oil] Market, It’s A Regional Market Between Mexico, Canada, And The [U.S.]” [7:52-8:53]
[8:12-8:40] “I don’t think that there was long-term damage done in the ties between the United States, Mexico and Canada, and we’re working very hard to get USMCA through the congress. We’re part of coalition efforts, we’re standing up our own efforts as well to make sure that lawmakers understand the importance of getting this new USMCA through the Congress. Mexico and Canada are our best trading partners; particularly in energy. This is a global market, but before it’s a global market it’s a regional market between Mexico, Canada, and the United States.”
API is the only national trade association representing all facets of the natural gas and oil industry, which supports 10.3 million U.S. jobs and nearly 8 percent of the U.S. economy. API’s more than 600 members include large integrated companies, as well as pipeline, exploration and production, refining, marketing, 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 47 million Americans. API was formed in 1919 as a standards-setting organization. In its first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.