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Crude oil export benefits

Hydrocarbon Engineering,


A summary of US crude oil benefits as presented by Ryan Lance, CEO and Chairman, ConocoPhillips to policymakers.

Abundance

  • All domestic oil should be allowed to compete freely in the global market.
  • The value received by oil exports would be commensurate with global prices.
  • The domestic price discount on light oil would be greatly reduced.
  • There would be increased cash flow for reinvestment.
  • A greater volume of wells and drilling plays would be come economic.
  • Investment in new production in the US would increase.

Economic benefits

  • Savings to consumers on fuel could hi US$18 billion /y.
  • Job creation and economic development would improve.
  • Between 2016 and 2030, expanded markets would incentivise US$750 billion in new exploration and production investment.
  • The US would gain US$135 billion /y in GDP at the peak.
  • At the peak, 1 million direct or supply chain jobs would be created.
  • Trade balance would improve by US$67 billion /y.
  • The US government would gain US$1.3 trillion in higher federal, state and local taxes and royalties between 2016 and 2030.

Jobs

  • Energy production prevented the US downturn from being worse and spurred recovery.
  • Oil and gas sector jobs expanded while others lagged behind.
  • Since 2007, oil and gas jobs have increased by 65%.
  • Total private sector growth only hit 2%.

Edited from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/refining/15012015/crude-export-benefits-nutshell/


 

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