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Energy Exports are Good for America

With the big increase in American oil and gas production, the U.S. now has the ability to become an energy supplier to the world. Unfortunately, outdated laws are preventing us from accomplishing this. Nicolas Loris of the Heritage Foundation explains in a Washington Times op-ed the many benefits the U.S. would see if these laws were changed.

He points out that one big benefit would be economic:

Expanded exports could provide a huge boon to the American economy, providing jobs and increasing economic growth broadly. Providing other countries with cheaper energy helps in two ways. It lowers the prices of products that the U.S. imports because the businesses could make the products more cheaply. And it promotes economic development in those countries, enabling them to import more American goods.

… Several studies project that lifting the ban would likely decrease gas prices in the U.S. and globally by creating a more efficient distribution system for processing oil. A recent study from the economic consulting firm IHS finds that removing the ban would lower gasoline prices by 8 cents per gallon, saving motorists $265 billion over 15 years.

Exports would also be good for our energy security:

Providing more energy choices to both producers and consumers worldwide will bolster U.S. national security by increasing global energy supplies. It will also reduce the ability of any one nation to use its control of energy resources to threaten U.S. interests.

Read his entire op-ed to see more reasons why our energy laws should be updated to reflect the reality of today’s oil and natural gas development.

Americans overwhelmingly voted for energy

“In the 2014 election cycle, energy was a clear winner, because voters from every party recognize its key role in job creation and economic growth: the top priorities on Election Day. In race after race, voters from all regions of our nation and from both political parties voted for candidates who stood behind pro-development, all-of-the-above energy policies.”
API President and CEO Jack Gerard

On November 4, the message voters sent to Congress, the White House, and state houses across the nation could not have been more clear—Americans want commonsense, pro-energy policies.

As reported in Your Oil and Gas News, a telephone poll conducted for the American Petroleum Institute on election night found strong support for oil and natural gas development. The survey of voters showed that:

• 72 percent support building the Keystone XL Pipeline.
• 90 percent recognize that increased production of domestic oil and gas creates jobs.
• 86 percent believe oil and gas development stimulates the economy.
• 66 percent are more likely to vote for candidates in 2016 who endorse pro-oil and gas policies.

Officeholders from the President on down can no longer question the priorities of the American people when it comes to energy. Voters have strongly spoken out in favor of a true all-of-the-above energy strategy that includes oil and natural gas. Now it’s up to our elected officials to heed the message and govern accordingly.

Energy Citizens Score a Victory on Cove Point

Our nation is now one step closer to becoming a global energy superpower.

In late September, federal regulators decided to allow liquefied natural gas (LNG) to be exported from Maryland’s Cove Point facility. Originally built to import LNG, Cove Point now has the green light to be refurbished and made export-capable. 

Energy Citizens like you played a big role in making this happen. You sent letters and e-mails to decision makers, you testified at hearings, and you attended events in support of Cove Point. By making your voices heard, you helped set the stage for America to open new markets for our energy.

Even though Cove Point’s application was approved, the LNG export approval process in America is still broken. It takes far too long for sites to receive permission to sell our nation’s abundant natural gas to our allies in other nations. Red tape is tying up our energy economy, threatening to slow down American oil and gas production.

While we celebrate the singular victory at Cove Point, we need to continue our efforts to modernize the LNG export process more broadly.

Abandoning Their Post: EPA Shirks RFS Responsibility

The EPA was already almost one-year late delivering its 2014 Renewable Fuel Standard (RFS) biofuel mandates. However, last week the EPA announced it wouldn’t be doing its job at all. They’re punting until 2015.

That means there will be no revised directive from the EPA telling refiners how much ethanol and other biofuel content they are required to blend into our fuel supply.

Taking a year off on this issue is inexcusable. The RFS has already been shown to be a failed policy that negatively impacts drivers, the environment, and our food supply. Americans don’t want it. Those who are firmly planted in the Ethanol lobby do.

The jury’s been in on this one for a while now. It’s time for the EPA to stand up to Ethanol interests and admit that the RFS simply does not work. The process of repealing or drastically revising the standards is long overdue.

Here are just a few of the things that have lately been written about the RFS:

“Ethanol production has diverted more than 40 percent of the U.S. corn crop from food to fuel, leading to a 25 percent increase in the consumer price index for food since 2005. Continuing to implement the Renewable Fuel Standard could lead to fuel rationing and supply shortages that could drive up gasoline costs by 30 percent and diesel costs by 300 percent, according to a NERA Economic Consulting study.”
John Griffin, Executive Director, Associated Petroleum Industries of Michigan

“Instead of attempting to reform the renewable standard, Congress should repeal it to protect American consumers from higher fuel and food costs.”
Kenneth A. Schwarz, retired petroleum exploration geologist

“The rule is already a year overdue and the administration has no intention of finalizing this year's requirements before the year ends. It is unacceptable to expect refiners to provide the fuels Americans need with so much regulatory uncertainty. This is an example of government at its worst.

“The Renewable Fuel Standard was flawed from the beginning, horribly mismanaged, and is now broken. The only real solution is for Congress to scrap the program and let consumers, not the federal government, choose the best fuel to put in their tanks. Failure to repeal could put millions of motorists at risk of higher fuel costs, damaged engines, and costly repairs.”
Jack Gerard, President and CEO, American Petroleum Institute

“Today's announcement is further evidence that Congress must reform our badly broken food-to-fuel policies. By failing to reduce the amount of corn ethanol blended into gasoline, the Obama administration today missed an opportunity to immediately reduce greenhouse gas emissions”
Mike Lavender, policy analyst, Environmental Working Group

The EPA should be embarrassed about its delays and inaction. It’s time to repeal this broken law. The list of policy negatives vastly outweighs any potential positives. The EPA and legislators should recognize this and scrap the RFS.

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