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Energy Tomorrow Blog

crude-oil-exports  gasoline-prices  consumers  domestic-oil-production  eia34 

Mark Green

Mark Green
Posted September 9, 2016

Looking back, the weight of scholarship and analysis had predicted that, rather than cause higher pump prices here at home as some claimed, exporting domestic crude would put downward pressure on U.S. gasoline prices. In fact, that’s what we’re seeing – abundant crude oil supply benefiting American consumers. U.S. crude exports are part of that market dynamic – while also helping to support domestic production and strengthening America’s balance of trade.

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crude-oil-exports  domestic-oil-production  security  economic-growth  jobs 

Mark Green

Mark Green
Posted December 7, 2015

t’s good that Congress appears to be talking seriously about ending the United States’ four-decades-old ban on crude oil exports. Reports say Democrats and Republicans are discussing a deal that would include lifting the export ban – though it’s unclear what a specific deal would look like. “We need to have a conversation” about oil exports, Senate Minority Whip Dick Durbin told Politico. “We need to have a fair negotiation.”

Of course, we’ve been having a conversation about the merits of lifting the exports ban for some time. And it starts with this: Every major study on the issue has found that exporting U.S. crude oil would be good for America and Americans. The benefits range from those to consumers, to the economy, to American security to domestic energy production. According to the research, ending the outdated ban would positively impact all of the above.

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crude-oil-exports  domestic-oil-production  security  president-obama  economic-growth  jobs 

Mark Green

Mark Green
Posted October 19, 2015

The question Americans should be asking right now: Why is the Obama administration actively working to clear the way for Iran to resume trading its crude oil on the global market while it opposes legislation that would do the same for U.S. oil?

It’s a great question for which the administration can offer no good answer, because there isn’t one.

Yet, that’s the policy disconnect that is unfolding before Americans’ very eyes, with the weekend news that the administration approved conditional sanctions waivers for Iran that at some point will let the Iranians resume exporting their oil to the world – within days of the White House threatening to veto bipartisan legislation in Congress that would end the 1970s-era ban on U.S. oil exports.

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energy-exports  crude-oil-exports  lng-exports  security  economic-growth  domestic-oil-production 

Mark Green

Mark Green
Posted October 15, 2015

Reuters reports that Lithuania is in talks with U.S. liquefied natural gas company Cheniere Energy, seeking to reduce its dependence on Russia for LNG supplies. Lithuania opened an LNG import terminal last year, and its gas supply contract with Russian state-owned supplier Gazprom is scheduled to expire at the end of the year. Rokas Masiulis, Lithuania’s energy minister:

“We would love to have U.S. cargo in our region to have competition with Gazprom. … I believe negotiations with Gazprom now will be on competitive, reasonable terms and that will be just business and nothing else. … After we have built an LNG terminal, there is no possibility of blackmail. Since we think there is no possibility of blackmail, discussion will be rational and economical rather than political. This is a big step.”

The minister speaks diplomatically, so let’s read between the lines a bit. We suspect that Lithuania is trying to secure the diversification of its energy supply. The country wants options, additional sources of LNG so that it is beyond leveraging by Russia on natural gas. Russia did this with oil in 2006, Reuters reports.

At the same time, Masiulis told Reuters that Lithuania also would be open to buying U.S. crude oil if the United States repeals its current ban on the export of domestic crude.

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crude-oil-exports  domestic-oil-production  economic-growth  jobs  us-energy-security  trade 

Mark Green

Mark Green
Posted October 13, 2015

Last week’s bipartisan U.S. House vote to end America’s 1970s-era ban on crude oil exports is stirring needed debate over U.S. energy and trade policy as the exports issue advances in Congress. Unfortunately, much of the conversation remains focused on the wrong things.

For example, export opponents continue to say the United States shouldn’t export crude oil as long as it’s an oil importer. We rebutted that economically faulty position here.  Access to global markets means bringing overseas wealth to the United States. Conversely, shutting in a domestic commodity is an obstacle to production and economic growth. The oil imports/exports threshold is one that isn’t applied to other domestic goods – and for good reason: Access to global markets is good for domestic producers.

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crude-oil-exports  domestic-oil-production  economic-growth  jobs  security  congress 

Mark Green

Mark Green
Posted October 9, 2015

It’s a bit early to go into a “victory formation” with the U.S. House of Representatives’ bipartisan vote to pass legislation lifting the United States’ decades-old ban on exporting domestic crude oil. The measure still has to get through the Senate, and President Obama has promised to veto it – vetoing help to consumersjobs and economic growth, as well as an opportunity to increase America’s global competitiveness while strengthening our security.

Yet, it’s a major step in the direction of making energy history, which ending the export ban surely would represent. It would acknowledge that the world is much changed since the 1970s-era ban was imposed – mainly, that the U.S. energy revolution has rewritten America’s energy narrative while fundamentally reordered the world energy balance. Both compel policymakers to finish the job and lift the export ban. 

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crude-oil-exports  domestic-oil-production  economic-growth  security  jobs 

Mark Green

Mark Green
Posted October 9, 2015

It’s a bit early to go into a “victory formation” with the U.S. House of Representatives’ bipartisan vote to pass legislation lifting the United States’ decades-old ban on exporting domestic crude oil. The measure still has to get through the Senate, and President Obama has promised to veto it – vetoing help to consumersjobs and economic growth, as well as an opportunity to increase America’s global competitiveness while strengthening our security.

Yet, it’s a major step in the direction of making energy history, which ending the export ban surely would represent. It would acknowledge that the world is much changed since the 1970s-era ban was imposed – mainly, that the U.S. energy revolution has rewritten America’s energy narrative while fundamentally reordered the world energy balance. Both compel policymakers to finish the job and lift the export ban.

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crude-oil-exports  domestic-oil-production  economic-growth  jobs  energy-security 

Mark Green

Mark Green
Posted October 7, 2015

The U.S. House has an important vote scheduled for Friday on legislation that would lift the 1970s-era ban on domestic crude oil exports. It’s an historic chance for U.S. policymakers to affirm that America’s energy picture is fundamentally and dramatically improved from where it was four decades ago – thanks to surging domestic production that has made the United States the world’s No. 1 producer of oil and natural gas.

It boils down to this: A vote for the bill would be a vote for U.S. jobs, economic growth, trade benefits  and strengthened American security. It would be a vote for U.S. consumers and American global competitiveness. It would be a vote for America’s friends abroad, who see U.S. energy as a global supply diversifier and stabilizer. As one ally said earlier this year, with U.S. oil exports the “world itself will be a … safer place.”

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analysis  energy-exports  crude-oil  congress  american-petroleum-institute  domestic-oil-production 

Mark Green

Mark Green
Posted September 8, 2015

It looks like last week’s U.S. Energy Information Administration (EIA) report pointing out the benefits of exporting domestic crude oil is pushing Washington policymakers closer to ending the 1970s-era ban on exports. McClatcheyDC reports:

Momentum is growing to lift the 40-year ban on exporting U.S. oil to foreign nations, with a federal report concluding that doing so wouldn’t raise gasoline prices. Congress could vote on proposals when it returns from its summer vacation after Labor Day. Rep. Joe Barton, R-Texas, said he has “green lights” from the House Republican leadership, and is confident the House will pass a bill on ending the ban this fall. “It is up to this Congress to examine the issue and move towards a better policy that reflects the reality of America today, not the America of 1975,” Barton said in an email.

It may be that EIA’s report marks “critical mass” in terms of how much research backing crude exports is needed to move the needle in Washington – saying, as a number of previous studies projected – that exporting U.S. oil won’t negatively affect consumers and will spur domestic production. EIA’s report addresses the White House’s chief concern, about the impact of a policy change on U.S. energy prices. And this week an important House subcommittee is scheduled to vote on legislation that would lift the export ban.  

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analysis  energy-exports  crude-oil  economic-growth  domestic-oil-production  gasoline-prices  jack-gerard 

Mark Green

Mark Green
Posted August 14, 2015

We’ve put up a number of posts recently that argue for lifting the United States’ decades-old ban on exporting domestic crude oil – citing sound economic, trade and security reasons. Underlying them all is this: As an energy superpower, America will see more benefits here at home, be more secure and help make the world safer if U.S. crude is allowed to trade freely in the global marketplace.

Now, there is a compelling, market reason for urgency in ending the export ban – a self-sanctioning relic of the 1970s that hinders U.S. global competitiveness while impeding domestic energy development and economic growth. That would be the impacts on global crude markets if/when Iran resumes exporting oil under the proposed nuclear agreement the White House is advancing.

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