The American Petroleum Institute (API) has said that a new report from the EIA has confirmed that lifting trade restrictions on US crude oil could benefit US consumers and promote America’s economic growth.
Erik Milito, API director of upstream and industry operations said, ‘trade restrictions on crude oil are a relic of the 1970s and only limit our growth as an energy superpower. Numerous other studies have reached the same conclusions, but the EIA’s analysis carries great weight with policymakers, and it demonstrates that restriction on US exports do nothing to advantage gasoline consumers here at home. In fact, by growing exports, we can create more US jobs, promote greater US energy production, and put downward pressure on fuel costs, a conclusion the Government Accountability Office (GAO) emphasised in a report last week.’
While offering no specific predictions, the report from the EIA explains that higher US production, prompted by exports, could increase global oil supplies and reduce the global price of crude, which is more important than domestic crude oil prices in determining US gasoline costs.
Milito continued, ‘we’ve all seen what the energy revolution has done to boost the economy and reshape global markets, and exports are key to continuing that growth. The case is clear. It’s time for policymakers to harness the economic advantages of free trade by lifting outdated and counterproductive limits on US crude exports.’
Edited from press release by Claira Lloyd