Friday, July 24, 2015
Independent Petroleum Association of America (IPAA) president and CEO Barry Russell has sent a letter to President Obama in support of efforts to lift the 1970s-era restrictions on exporting surpluses of U.S. crude oil to the global marketplace. In the letter, Russell outlined how repealing the 40-year-old crude exports ban would benefit American consumers, businesses, and national security.
Russell also pointed to more than 20 nonpartisan economic studies that have all agreed that repealing the crude oil export ban will lead to more American jobs, increased energy production, downward pressure on U.S. gasoline prices, greater energy security, improvement to the U.S. balance of trade, and would strengthen America’s geopolitical standing around the world. “The American energy renaissance has created a historic opportunity for the nation, for the benefit of consumers, businesses, and natural security,” Russell wrote. “To continue growing as an energy superpower, America must have policies that reflect modern energy markets, rather than policies based on a market that existed in the 1970s.”
Currently, U.S. law prohibits most unprocessed American crude from being sold overseas, but does not limit the sale of refined petroleum products such as gasoline, diesel, and jet fuel to foreign buyers. By adding a surplus of American crude oil to the world market, IPAA maintains crude oil exports would help lower U.S. gasoline prices, allowing families to keep more of their hard-earned money. “American families and businesses in every state stand to benefit as crude exports will increase the United States’ gross domestic product and stimulate economic activity across the nation,” Russell said. “Adding a surplus of America’s crude oil into the world market would reduce market volatility, stabilize oil prices that are set by the global market, and therefore lower U.S. gasoline prices, which are based on international oil prices.”
He added, “As the administration did by taking action regarding condensates, IPAA urges it to give impartial consideration to the economic and consumer benefits that could result in completely lifting the restrictions on U.S. crude oil exports as wholly in America’s national interest. IPAA stands ready to work with this administration on advancing thoughtful, commonsense decisions on crude oil exports.”
Russell also pointed to more than 20 nonpartisan economic studies that have all agreed that repealing the crude oil export ban will lead to more American jobs, increased energy production, downward pressure on U.S. gasoline prices, greater energy security, improvement to the U.S. balance of trade, and would strengthen America’s geopolitical standing around the world. “The American energy renaissance has created a historic opportunity for the nation, for the benefit of consumers, businesses, and natural security,” Russell wrote. “To continue growing as an energy superpower, America must have policies that reflect modern energy markets, rather than policies based on a market that existed in the 1970s.”
Currently, U.S. law prohibits most unprocessed American crude from being sold overseas, but does not limit the sale of refined petroleum products such as gasoline, diesel, and jet fuel to foreign buyers. By adding a surplus of American crude oil to the world market, IPAA maintains crude oil exports would help lower U.S. gasoline prices, allowing families to keep more of their hard-earned money. “American families and businesses in every state stand to benefit as crude exports will increase the United States’ gross domestic product and stimulate economic activity across the nation,” Russell said. “Adding a surplus of America’s crude oil into the world market would reduce market volatility, stabilize oil prices that are set by the global market, and therefore lower U.S. gasoline prices, which are based on international oil prices.”
He added, “As the administration did by taking action regarding condensates, IPAA urges it to give impartial consideration to the economic and consumer benefits that could result in completely lifting the restrictions on U.S. crude oil exports as wholly in America’s national interest. IPAA stands ready to work with this administration on advancing thoughtful, commonsense decisions on crude oil exports.”
