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Hydrocarbon Engineering,

CBO confirms economic benefits of crude exports

A new report from the non-partisan Congressional Budget Office (CBO) has confirmed that removing export barriers for US crude oil could incentivise higher domestic production, grow the economy, increase federal revenues, and put downward pressure on gasoline prices.

API Director of Upstream and Industry Operations, Erik Milito said, “the CBO report makes it clear that lifting America’s outdated export restrictions will help to grow the economy and save consumers money. This is the same conclusion supported by study after study, including those from the Government Accountability Office and the Energy Information Administration. It’s time for policymakers to embrace free trade, so that we can maximise the benefits of America’s energy revolution.

“America’s growth as an energy superpower has been a game changer, creating a more competitive global market, where one group cannot easily control prices. By giving producers access to a free market for America’s crude, we can grow that momentum, create more jobs, and support our allies overseas.”

The report, which examines the economic benefits of America’s shale energy revolution, concludes that exports would have ‘positive economic and budgetary effects’ and ‘US consumers of gasoline, diesel fuel, and other oil products would probably benefit[…]because those prices depend primarily on the world price of crude oil, which would decline slightly once lower priced US crudes were available in the international market.’ The CBO cited a potential decline in gasoline prices ranging from 5 – 10 cents /gal.

Senate action to enhance security of US infrastructure

The API welcomed the Senate’s approval today of the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014.

API Executive Vice President, Louis Finkel said, “America’s oil and natural gas industry holds safety and security as core values. Taking steps to better protect critical infrastructure strengthens our economy and our national security. We encourage the House of Representatives to quickly take up and pass the bipartisan agreement approved by the Senate.”

The legislation has the strong support of American manufacturers, producers, processers, distributors, transporters, and retailers in agriculture, chemistry, energy, and other businesses that form our nation’s infrastructure. API and 19 other trade associations urged support for the bill in a letter sent to Congress earlier this month.

Edited from press releases by Claira Lloyd

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