Below are some of the key benefits of exporting US crude, according to Ensys Energy and ICF International.
Up to US$ 5.8 billion is the estimated reduced consumer fuel costs for 2015 – 2035. Between the period, US weighted average petroleum product prices are expected to decline by as much as 2.3 cents /gal., if US crude exports are allowed. The biggest potential annual decline is 3.8 cents /gal., expected in 2017. The price decreases for gasoline, heating oil and diesel could save American consumers up to US$ 5.8 billion /y on average, over the whole period.
By 2020 it is expected that there will be an expansion of investment in US exploration, development and production of up to US$ 70 billion.
If US crude oil exports are permitted, it is anticipated that there will be an increase of up to 500 000 bpd in domestic crude oil production by 2020.
It is projected that by 2020, there could be a GDP gain of up to US$ 38 billion, an average of US$ 15 - 27 billion /y though to 2035. GDP increases are led by increases in hydrocarbon production and greater consumer product spending.
The US economy could gain 300 000 additional jobs in 2020 when crude exports are allowed. Consumer products and services and hydrocarbon production sectors would see the largest employment gains.
US federal, state and local tax receipts attributable to GDP increases from expanding crude oil exports could increase by up to US$ 13. 5 billion in 2020.
Lifting crude oil export restrictions contributes to expanded US exports. This could narrow the US trade deficit by US$ 22 billion in 2020 through increased international trade of US crude oil.
Without crude oil export restrictions, US refinery throughput is expected to average at 15.5 million bpd, 100 000 bpd higher than with restrictions. Refinery throughput is slightly higher than crude exports because refinery process bottlenecks are more effectively alleviated by the flexibility to swap crudes in the world market.
Highlights of state benefits
Employment impact estimated to 2020:
- Texas 40 921.
- California 23 787.
- North Dakota 22 215.
- Ohio 15 948.
- New York 15 350.
Estimated income contribution to 2020:
- Texas US$ 5.21 billion.
- North Dakota US$ 4.81 billion.
- Ohio US$ 2.68 billion.
- Pennsylvania US$ 2.15 billion.
- California US$ 2.06 billion.
Edited from report by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/10112014/benefits-of-crude-oil-exports-in-us/