Thursday, November 19, 2015
U.S. Sen. John Hoeven (R-N.D.) is working to attach a measure that would lift the ban on U.S. crude oil exports to the new highway bill scheduled to pass Congress this month. Hoeven addressed a gathering of oil industry leaders Nov. 16, telling them that lifting the 40-year-old ban on exporting crude would be good for consumers, good for the Bakken, and good for the country.
The North Dakota lawmaker made his remarks at the 2015 Williston Petroleum Banquet hosted by the Williston Basin Chapter of the American Petroleum Institute. “Lifting the ban on crude oil exports will benefit not only our nation and our allies, but also North Dakota and the men and women in the Williston Basin whose dedication and ingenuity is helping our state lead the nation in energy production,” Hoeven said. “We know you face challenges, and we thank you for your contribution to our state’s energy industry. That’s why I am working to include legislation lifting the ban in the new highway bill that Congress is on track to pass. It is must-pass legislation, which means it will be hard for the president to veto, and the benefits of allowing crude oil exports are multiple.”
He cited key benefits in making the case for allowing exports, among them that exports will benefit the U.S. energy industry. A study by the U.S. Energy Information Administration concluded that lifting the ban will reduce the discount for light, sweet crude produced in states like North Dakota and Texas and encourage investment in domestic production. Further, oil exports would benefit the American economy by increasing revenues and boosting overall economic growth, in addition to helping increase wages and job creation and improve the U.S. trade balance.
Hoeven added that crude exports would also benefit American consumers. Since the price of oil is based on supply and demand—the more oil on the market, the lower the price to consumers. More global supply means lower prices for gasoline and other fuels. Finally, exports would strengthen national security by providing American allies with alternative sources of oil and free them from reliance on energy from unstable regions of the world. Hoeven characterized the export ban as an outdated strategy from the 1970s, when conventional wisdom held that there was a finite quantity of oil in the world. A lot has changed with the American energy revolution taking place in North Dakota, Texas, and other regions of the country, he said.
The North Dakota lawmaker made his remarks at the 2015 Williston Petroleum Banquet hosted by the Williston Basin Chapter of the American Petroleum Institute. “Lifting the ban on crude oil exports will benefit not only our nation and our allies, but also North Dakota and the men and women in the Williston Basin whose dedication and ingenuity is helping our state lead the nation in energy production,” Hoeven said. “We know you face challenges, and we thank you for your contribution to our state’s energy industry. That’s why I am working to include legislation lifting the ban in the new highway bill that Congress is on track to pass. It is must-pass legislation, which means it will be hard for the president to veto, and the benefits of allowing crude oil exports are multiple.”
He cited key benefits in making the case for allowing exports, among them that exports will benefit the U.S. energy industry. A study by the U.S. Energy Information Administration concluded that lifting the ban will reduce the discount for light, sweet crude produced in states like North Dakota and Texas and encourage investment in domestic production. Further, oil exports would benefit the American economy by increasing revenues and boosting overall economic growth, in addition to helping increase wages and job creation and improve the U.S. trade balance.
Hoeven added that crude exports would also benefit American consumers. Since the price of oil is based on supply and demand—the more oil on the market, the lower the price to consumers. More global supply means lower prices for gasoline and other fuels. Finally, exports would strengthen national security by providing American allies with alternative sources of oil and free them from reliance on energy from unstable regions of the world. Hoeven characterized the export ban as an outdated strategy from the 1970s, when conventional wisdom held that there was a finite quantity of oil in the world. A lot has changed with the American energy revolution taking place in North Dakota, Texas, and other regions of the country, he said.
