Posted January 16, 2015
Bloomberg: Ending restrictions on U.S. crude exports could cut gasoline prices as much as 12 cents a gallon, a Columbia University study co-written by a former adviser to President Barack Obama has concluded.
Without the partial ban, domestic production might increase as much as 1.2 million barrels a day by 2025, making the U.S. more resilient to global supply disruptions, according to the study.
“Easing energy export restrictions does not raise gasoline prices for consumers,” Jason Bordoff, a former energy and climate adviser to Obama who is now director of the Center on Global Energy Policy at Columbia University, said in a telephone interview.
Posted December 23, 2014
Posted December 8, 2014
Chicago Tribune Editorial: Last summer the Chicago City Council briefly considered an ordinance that would require gas stations in the city to sell a blend of fuel called E15, which has the potential to damage your car engine.
An E15 mandate is a patently bad idea. Changing pumps to sell a fuel blend of 15 percent ethanol — what you buy now has 10 percent — would be a big expense for gas stations. And E15 isn't safe for use in many older engines, from cars to trucks to boats to lawn mowers.
The idea seemed to die last summer. You might think the aldermen decided to put their constituents before the ethanol industry lobbyists who are pushing this fuel mandate. If you did, chalk that up to a triumph of hope over experience. This is, after all, the Chicago City Council.
Posted November 27, 2014
Happy Thanksgiving everybody.
When it comes to energy there’s much for which Americans can give thanks.
We have plentiful and accessible reserves of oil and natural gas that fuel healthy, mobile, modern lifestyles.
We enjoy safe and secure crude oil imports from Canada, our neighbor and ally and No. 1 source of imported oil.
Our country is served by a vibrant, modern industry – one that’s second to none in the use of safe, hydraulic fracturing and horizontal drilling, offshore development and environmental awareness.
America keeps running thanks to a vast pipeline network and the world’s biggest, most-efficient refineries. And there’s more.
Posted November 3, 2014
About a month ago, API President and CEO Jack Gerard stressed the importance of taking a comprehensive approach to develop new federal rules to govern the shipment of crude oil by rail – the soundest way to improve the North American rail network’s already strong 99.998 percent success rate:
“API supports a rule that ultimately improves the safety of rail transportation in North America through a holistic approach while allowing for the continued growth of the energy renaissance that has created and supported millions of jobs across the U.S. and Canada.”
The goal is realizing actual safety improvement. Industry is highly motivated in the quest for safety. Hess Corporation’s Lee Johnson, rail logistics advisor:
“My view has always been that I think the oil industry is maniacally focused on safety because of the consequences of failure in anything. … Everybody is very safety conscious, safety trained and well-equipped.”
With those stakes, developing the best safety rules possible is the objective. Industry believes improving safety is a multi-faceted endeavor – requiring enhanced prevention, mitigation and response measures – and it should be science-based.
Posted October 14, 2014
Posted October 14, 2014
A new study by the Aspen Institute joins a series of analyses concluding that one benefit from exporting U.S. crude oil would be lower gasoline prices here at home. Aspen’s projected reduction of between 3 and 9 cents per gallon parallels findings in previous major studies by ICF International (3.8 cents per gallon), IHS (8 cents) and Brookings/NERA (7 to 12 cents) that exports would lower pump prices.
Aspen and the other studies project other benefits from exporting crude oil, including broad job creation, economic growth and increased domestic energy production. Yet the solidifying consensus that consumers also would benefit is critically important as the public policy debate on oil exports continues.
Posted October 8, 2014
New York Times: HOUSTON — The Singapore-flagged tanker BW Zambesi set sail with little fanfare from the port of Galveston, Tex., on July 30, loaded with crude oil destined for South Korea. But though it left inauspiciously, the ship’s launch was another critical turning point in what has been a half-decade of tectonic change for the American oil industry.
The 400,000 barrels the tanker carried represented the first unrestricted export of American oil to a country outside of North America in nearly four decades. The Obama administration insisted there was no change in energy trade policy, perhaps concerned about the reaction from environmentalists and liberal members of Congress with midterm elections coming. But many energy experts viewed the launch as the curtain raiser for the United States’ inevitable emergence as a major world oil exporter, an improbable return to a status that helped make the country a great power in the first half of the 20th century.
“The export shipment symbolizes a new era in U.S. energy and U.S. energy relations with the rest of the world,” said Daniel Yergin, the energy historian. “Economically, it means that money that was flowing out of the United States into sovereign wealth funds and treasuries around the world will now stay in the U.S. and be invested in the U.S., creating jobs. It doesn’t change everything, but it certainly provides a new dimension to U.S. influence in the world.”
Posted October 6, 2014
We’ve posted a number of times on the merits of U.S. energy exports, because whether the subject is exporting crude oil or natural gas, there are compelling economic and energy reasons to lift restrictions on America’s ability to be a major player in global markets. While those restrictions remain, America and Americans lose.
A number of studies have said that energy exports will benefit our economy and stimulate more domestic production – here, here and here on liquefied natural gas (LNG) and here and here on crude oil. A new report from Columbia University’s Center for Global Energy Policy added that LNG exports could help strengthen the United States’ foreign policy hand.
Thanks to abundant oil and natural gas reserves, advanced hydraulic fracturing and horizontal drilling and investments by a robust industry sector, the U.S. is the world’s No. 1 producer of natural gas and is about to become No. 1 in oil output (subscription required). Yet, because of self-imposed and outdated (in the case of the crude oil) export restrictions, the U.S. isn’t harnessing its energy potential as it could and should.
Posted September 19, 2014
A couple of recent polls indicate many Americans are concerned that lifting the 1970s ban on crude oil exports could increase prices at the pump. A couple of thoughts.
First, it’s likely these opinions stem from an idea that restricting domestic crude oil output to the boundaries of the United States will favorably impact domestic pump prices. Yet, because crude oil is traded globally, the world market sets the cost of crude, which then is the chief factor in prices at the pump.
Second, the strong weight of new scholarship and analysis say that allowing exports of domestic crude will lower pump prices in this country – while also boosting economic growth, employment and wages and improving our balance of trade.