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Agreeing with crude exports and lower gasoline prices

Hydrocarbon Engineering,


Brookings

‘Lift the Ban on US Oil Exports’ from Brookings in January 2014 said, ‘domestic consumers do note substantially benefit from an export ban, and US oil producers may soon be affected negatively by it…Unrestricted exports, in combination with increased investments in combination with increased investments in infrastructure, are expected to provide a boon for domestic oil production, generating income, jobs and taxes along the production chain.’

The Council on Foreign Relations

The Council on Foreign Relations is quoted in the report ‘The Case for Allowing US Crude Oil Exports,’ from July 2013 as saying, ‘prices at the pump will continue to be determined by the global market, regardless of whether the US exports crude oil…Without compelling reasons for continuing to restrict crude exports, and given the potential benefits, Congress should liberalise the crude oil export regime. Republicans and Democrats alike, including President Obama, express support for boosting US exports in general. Crude oil should be no exception.’

Federal Reserve Bank of Dallas

In a report from July 2014 called ‘Crude Oil Export Ban Benefits Some…but Not All,’ the Federal Reserve Bank of Dallas said, ‘analyses in several export ban studies suggest that higher US oil prices would spur greater drilling for oil and cause US production to grow at a rate faster than if the export ban remained. This would increase the supply of oil available on the world market and lead to greater production of gasoline and diesel fuels, lowering their prices and benefitting US consumers…To the extent that the ban discourages drilling, this limits the potential supply of oil available to be processed into gasoline and diesel, placing upward pressure on retail fuel prices.’

ICF

‘The Impacts of US Crude Oil Exports on Domestic Crude Production, GDP, Employment, Trade and Consumer Costs’ from ICF in March 2014 is quoted as saying, ‘US weighted average petroleum product prices decline as much as 2.3 cents /gal. when US crude exports are allowed. The greatest potential annual decline is up to 3.8 cents /gal. in 2017. These price decreases for gasoline, heating oil, and diesel could save American consumers up to US$ 5.8 billion /y, on average, over the 2015 – 2035 period…The US economy could gain up to 300 000 jobs in 2020 when crude exports are allowed. Consumer products and services and hydrocarbon production sectors would see the largest gains.’

IEA

In the January 2014 Oil Market Report, the International Energy Agency said, ‘with 2013 US crude oil production exceeding even the boldest of expectations by a wide margin, that wall now seems to be looming larger than ever, and the issue has become a matter of public debate…there is a rising tide of technical and political debate about whether, or when, the US market may run out of options to accommodate further gains without regulatory adjustments.’

IHS

In May 2014 in a report titled ‘US Crude Oil Export Decision: Assessing the Impact of the Export Ban and Free Trade on the US Economy,’ IHS said, ‘Lifting the 1970s era restrictions on US crude oil exports would lead to further increases in domestic oil production, resulting in lower gasoline prices while supporting nearly 1 million additional jobs at the peak…It would lead to a total of US$ 746 billion in additional investment during the study period and an average of 1.2 million bpd more oil production per year, the study finds. The additional crude oil supply would lower gasoline prices by an annual average of 8 cents /gal., the study says. The combined savings for US motorists during the 2016 – 2030 period would translate to US$ 265 billion compared to a situation where the restrictive trade policy remains in place. The increased economic activity resulting from the rise in crude production would support an average of 394 000 additional US jobs per, with highs of 811 000 additional jobs supported in 2017 and a peak of 964 000 jobs in 2018.’


Edited from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/21102014/reports-agree-with-us-crude-exports/


 

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