The People of America's Oil and Natural Gas Indusry

Energy Tomorrow Blog

analysis  keystone-xl  canada  oil-sands  economic-benefits  american-petroleum-institute 

Mark Green

Mark Green
Posted September 17, 2015

This Saturday marks a dubious anniversary: seven years since the first permit application was filed to build the Keystone XL pipeline.

Seven years!

Given the typical process for a federal cross-border pipeline approval, Keystone XL should have started pumping oil from Canada and the U.S. Bakken region years ago. For purely political reasons, Keystone XL has languished with the Obama administration for seven years now – denying significant energy, economic and national security benefits to the United States.

The months and years come and go, and yet American public support for Keystone XL has remained a constant – underscoring the political nature of the White House’s mishandling of the project. A new poll of registered voters found 68 percent of Americans want the pipeline built – compared to 21 percent opposed. The result is similar to this poll last fall as well as polls in April 2014, December 2013, April 2013, February 2012 and others. This is consensus. With the American people, Keystone XL is a settled issue.

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analysis  energy-exports  crude-oil  economic-benefits  american-petroleum-institute 

Mark Green

Mark Green
Posted September 15, 2015

So here we are: Legislation that would end America’s 40-year-old ban on the export of domestic crude oil is moving through Congress – and better, there’s bipartisan momentum behind it.

Resistance to lifting the crude exports ban has no credible footholds – reflecting the breadth of the economic analysis supporting exports. There’s also the realization by most Americans that our country’s ongoing energy revolution has pretty much dashed the 1970s-era justifications for excluding American energy from the global marketplace, where it could be positively affecting global crude markets, stimulating production here at home and providing real energy aid to America’s allies.

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analysis  energy-exports  crude-oil  economic-benefits  production  american-petroleum-institute  jack-gerard 

Mark Green

Mark Green
Posted September 15, 2015

Join us Tuesday morning for a live event from Washington, D.C., that will explore the impacts of America’s crude oil exports ban on our economy, national security, foreign policy, the environment, consumers and more.

The event, hosted by National Journal and sponsored by API, is scheduled to begin at 8:45 a.m. API President and CEO Jack Gerard will introduce the event, followed by remarks from U.S. Sens. Heidi Heitkamp and John Hoeven, both of North Dakota, and Ed Markey of Massachusetts. 

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analysis  energy-exports  crude-oil  gasoline-prices  congress  american-petroleum-institute 

Mark Green

Mark Green
Posted September 10, 2015

An important step forward this week for legislation to end America’s outdated, 1970s-era ban on domestic oil exports: passage of the bill by a U.S. House subcommittee. Next a full committee vote and, perhaps before too long, a vote by the entire House. Yet, challenges remain.

No doubt the full Energy and Commerce Committee debate will be more vigorous. But that doesn’t diminish this week’s historic progress on lifting the export ban – a true relic from America’s energy past.  “This has been a long day coming,” said Rep. Joe Barton of Texas, the bill’s author.

As Barton explained, we’re at this point largely because of America’s energy revolution – the surge in domestic oil and natural gas production resulting from American innovation, technology, shale reserves and hydraulic fracturing and horizontal drilling.

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analysis  energy-exports  crude-oil  economic-growth  american-petroleum-institute  gasoline-prices 

Mark Green

Mark Green
Posted September 9, 2015

API has a pair of new ads that drive home the economic and national security reasons for lifting America’s 1970s-era ban on exporting domestic crude oil

Here’s the national security spotClick here for the ad that underscores the job and economic reasons for lifting the ban. 

The television and online campaign launched this week in a dozen states – including Colorado, Florida, Illinois, Pennsylvania and Virginia – and the District of Columbia. The campaign is part of a broader push emphasizing the importance of updating U.S. energy policies to reflect America’s rise as a global energy superpower.

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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  eia34  economic-benefits  oil-production  american-petroleum-institute 

Mark Green

Mark Green
Posted September 1, 2015

Some quick points from the new crude oil exports study from the U.S. Energy Information Administration (EIA):

First, like a series of other studies before it, EIA’s study finds that lifting America’s 1970s-era ban on exporting domestic crude oil would not negatively affect U.S. consumers. EIA says:

Petroleum product prices in the United States, including gasoline prices, would be either unchanged or slightly reduced by the removal of current restrictions on crude oil exports.

EIA projects that ending the export ban – which would allow shut-in domestic crude to access global crude oil markets – would spur more domestic production. Then the global supply/demand would become “looser,” putting downward pressure on global crude prices, resulting in “lower petroleum product prices for U.S. consumers.

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analysis  mexico  crude-oil  energy-exports  trade  economic-benefits  american-petroleum-institute 

Mark Green

Mark Green
Posted August 17, 2015

Late last week the Obama administration gave the go-ahead for limited domestic crude oil exports to Mexico, a positive move on oil exports – yet one that immediately underscores this question: Why stop there?

According to the Associated Press, license applications approved by the Commerce Department allow the exchange of similar amounts of U.S. and Mexican crude, a swap. The U.S. would send an as-yet unspecified amount of light crude to Mexico in exchange for heavier Mexican crude. AP:

While the Commerce Department simultaneously rejected other applications for crude exports that violated the ban, the move to allow trading with Mexico marked a significant shift and an additional sign that the Obama administration may be open to loosening the export ban. Exchanges of oil are one of a handful of exemptions permitted under the export ban put in place by Congress.

Two things: First, the arrangement with Mexico, while limited in scope, nonetheless is the administration affirming the inherent benefits of trade. The light crude in the deal represents some of the domestic oil that’s accumulating and trading at a discount to global prices, unable to reach the world market because it’s shut in by an outdated, anti-competitive oil exports ban. Second, the U.S. needs to go further.

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analysis  energy-exports  trade  crude-oil  liquefied-natural-gas  lng34  economic-growth  oil-and-natural-gas-production  american-petroleum-institute 

Mark Green

Mark Green
Posted August 11, 2015

The U.S. Commerce Department’s recent mid-year trade report illustrates how surging domestic oil and natural gas production is helping our economy – and strongly suggests what increased domestic output could do if U.S. crude oil and liquefied natural gas (LNG) had unhindered access to global markets.

According to Commerce, the U.S. trade deficit among petroleum and petroleum products fell 56.1 percent the first six months of this year compared to the first six months of 2014 (exhibit 9). That growth helped hold the total U.S. year-over-year trade balance steady, even as the trade deficit in non-petroleum products increased 23.1 percent. API Chief Economist John Felmy:

“Despite a very competitive global market, the U.S. energy revolution continues to push our trade balance in a positive direction. Oil imports remain on the decline, and strong exports of petroleum and refined products are creating new opportunities for America to bring wealth and jobs back to U.S. shores.”

For that trend to continue, though, the United States must pursue energy trading opportunities with the same vigor it pursues trade in other areas. A 1970s-era ban on crude oil exports should be lifted, and LNG export projects should be approved by the government so that domestic producers have every chance to access global markets.

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analysis  ozone  regulation  economic-impacts  american-petroleum-institute 

Mark Green

Mark Green
Posted August 10, 2015

API has a new series of online ads that underscore potential risks from EPA’s proposal to impose stricter national ozone standards. The ads focus on potential impacts for individual states including Indiana, Colorado, Missouri, West Virginia and Virginia – which could see more than 38,600 jobs lost.

The key message in the ads is that an unnecessary tightening of ozone standards nationally could have dire effects locally, in each and every state.

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