It appears that 2016 will mean big things for U.S. energy on the global stage. Below, Bloomberg Business reports about how American shale production is shaking up the world energy market:
U.S. shale drillers who pushed domestic crude production to a 45-year high and unlocked record amounts of natural gas are letting those supplies loose into global markets they were absent from for decades. The tanker of shale oil that shoved off from a Texas port on New Year’s Eve and a shipment of liquefied natural gas that’s prepared to set sail later this month will inaugurate a new era of competition among the world’s largest energy producers.
With the end of the oil export ban, American oil production can begin reducing the impact that unfriendly nations have in the world energy market. This means greater worldwide leverage for the U.S. and less influence for many hostile oil-exporting regimes.
The shale revolution has done great things for America. It is providing good-paying jobs from coast-to-coast and growing our economy. Now that oil exports are finally legal, we can begin to see its beneficial effects play out even more around the globe.
As part of the omnibus spending legislation passed by Congress in December, lawmakers included a provision to lift the prohibition on crude oil exports. This ban, in place since the 1970s, has hurt U.S. oil production and hampered job development. The Roanoke Times explains the economic benefits of lifting the ban:
The economic benefits could be very broad. Economists say exports could help the economy by reducing fuel prices — there are a lot of U.S. industries for which energy is a huge cost, from agriculture, to airlines, to manufacturing. Exports should also encourage investment in oil and gas production and transport and create jobs.
Repealing this outdated law was a top priority for Energy Citizens in 2015. Across the nation, energy advocates made calls, e-mailed members of Congress, and educated the public about why the ban needed to go. It is a big victory for energy workers and consumers that our members of Congress listened and took action to end this job-killing ban.
We are convinced that lifting the crude export ban was achieved in part by the efforts of average Americans, including Energy Citizens, who took the time to write, email, and call decision makers. As we start another year, let’s remember that our voices do make a difference and resolve to keep pushing for smart energy policies in the months ahead.
It was only in late 2015 that Congress lifted the crude oil export ban, but we are already seeing benefits from this pro-energy policy. The Danville Register & Bee reports:
Oil prices have remained low despite heightened tensions between two of the world’s big oil-producing countries, Iran and Saudi Arabia, and a new law allowing U.S. crude exports helps explain why, the oil industry’s top lobbyist said Tuesday.
Jack Gerard, president and CEO of the American Petroleum Institute, said the 3-week-old law lifting a 40-year ban on crude exports has already changed the dynamics of the global oil industry.
With American oil now going to the world market, it means less volatility in oil prices. That stability is reflected in the prices Americans pay at the pump.
Ending the oil export ban will lead to a new global energy market, one where the U.S. plays a key role. That’s bad news for Russia and OPEC, but good news for America and our allies.
In late 2015, Congress passed legislation to end the ban on exporting American crude oil. The benefits of allowing American oil onto the world market will not only be felt in oil-producing states, but they will be shared widely across the U.S., including in Florida.
The Jacksonville Business Journal reports how lifting the export ban will have ripple effects in its city:
With the ban on oil exports lifted after nearly 40 years, there could be some effects in Jacksonville, including impacts on its burgeoning natural gas industry.
Natural gas companies can expect to see benefits related to the availability of U.S. crude oil on the global market and resulting price fluctuations, said Eagle LNG President Sean Lalani, whose company is building two facilities in Jacksonville.
Check out the entire article to see how Jacksonville’s economy depends on oil and gas produced in other states. As this report should remind every Floridian, the energy industry has an impact that goes far beyond the oil and gas fields. We all benefit when America pursues pro-energy policies.
As both the Republican and Democratic presidential candidate fields narrow, North Carolina voters should start taking a close look at where the candidates stand on important energy issues, with special attention paid to crude oil exports.
As you probably know, U.S. energy producers have not been able to engage in large-scale export sales of domestic crude oil since the 1970s. That needs to change. Lifting the outdated ban on exporting American-made crude would spur investment, energy production, economic growth, and job creation.
In North Carolina, more than 5,900 new jobs would be created by repealing the ban. The salaries generated by those jobs would increase total state incomes by about $740 million, money that would ripple through North Carolina communities and businesses.
Check out this chart – CRUDE EXPORTS YIELD ECONOMIC BENEFITS ACROSS 50 STATES – to see how other states would fare. Then, as you watch the debates and look over the position statements of the people vying to be our next president, see where they stand on lifting the crude oil export ban.
On December 3, the House of Representatives voted again to end the decades-old ban on American crude oil exports.
Both Democrats and Republicans supported lifting the ban, making this legislation one of the few bipartisan bills in Washington these days. This bipartisan majority knew that allowing crude oil exports will create jobs, grow our economy, and help consumers.
It is also good to see a majority of Virginia’s congressional delegation backing crude oil exports, although it is disappointing that three Virginians did not support this common-sense policy. With this bill moving to the Senate, Energy Citizens should make sure that both our senators know the importance of lifting the ban. Have you contacted Senators Warner and Kaine yet?
Lifting the crude oil exports ban has been one of Energy Citizens’ top priorities this year. It’s easy to see why – allowing American crude oil exports could create 300,000jobs and save consumers nearly $6 billion every year.
In fact, lifting the ban is so important to us that Energy Citizens nationwide have sent almost 100,000 letters to their members of Congress so far this year supporting it. We’ve also been out in the community, knocking on 30,000 doors in districts across the country, encouraging others to contact their members of Congress too.
And they seem to be listening – on October 9, 2015, there was a bi-partisan vote in the House of Representatives that said yes to lifting the ban on American crude oil exports.
Now that this legislation has successfully passed the House, it will move on to the Senate. We’ll be sure to keep you posted as important updates arise. For now, please feel free to reach out to me if you’re interested in taking action.
Here are some of the things you can do to encourage your Senators to lift the ban:
As the battle to lift the outdated ban on U.S. crude oil exports continues in Washington, one U.S. senator and a university student have written an excellent guest editorial for Forbes that asks the very relevant question – It Isn’t 1975, So Why Are We Still Banning Oil Exports?
Sen. Bill Cassidy of Louisiana and Dillon Weber from the University of Pennsylvania do a great job of summing up the argument in favor of revising our export policies to allow U.S. energy companies to sell part of their crude output to our allies. After detailing the changes that have taken place in U.S. oil production since 1975, they write:
The changing dynamics of our energy industry means that lifting the outdated export ban would be enormously beneficial for the nation. A 2014 study by the non-partisan Aspen Institute predicted that lifting the ban would create a 1% rise in GDP and 630,000 new American jobs by 2019. American families will see their household income increase while their fuel costs will decrease. Further, the Congressional Budget Office predicts $1.4 billion in new revenue, which can be spent on needed infrastructure improvements, education and shoring up our budget.
They make a lot of sense, as members of the House realized when they approved expanded crude exports early in October, and again last week. As the Senate takes up this issue, contact your Senators and tell them to read this editorial, and then vote in favor of lifting the crude oil export ban.