In Case You Missed It (June 12th -19th)

The House Committee on Small Business held a hearing this week which examined the possibility of lifting the ban on U.S. crude oil exports and the impact such action would have on America’s small businesses. The committee hosted a panel of small business owners and experts who focused on the small business income and job development that removing the 40 year-old ban on crude oil exports could bring.  Small business owner Dale Leppo stated that in his home state of Ohio alone, the energy boom has led to a significant increase in activity in the energy supply chain. Leppo went on to present the findings from an IHS study that estimates as many as 440,000 new domestic jobs would be created in the supply chain by 2018, as a result of repealing the ban on crude oil exports.

In the news, Drs. Margo Thorning and William Shughart’s economic report on the benefits of U.S. oil exports, appeared in the editorial section of the US Daily Review. The column summarizes the economic findings of their dual report which highlights the importance and need for crude oil exports. Additionally, an op-ed in The Hill, by Benjamin Zycher with the American Enterprise Institute, examined the effects lifting the ban would have from a trade perspective. “The defense of free trade is a crucial component of the larger defense of capitalism and freedom… Ending the ban would be an important component of a larger reform agenda for this Congress,” Zycher wrote.

This week’s notable op-eds/articles:

  • Fuel Fix, 06/17/2015, “Ending oil export ban could help little guys, too, small businesses tell House committee,” by Jennifer A. Dlouhy
  • The Hill, 06/17/2015, “Time to end federal interference with free trade in crude oil,” by Benjamin Zycher
  • Investors Business Daily, 06/15/2015, “Will U.S. Export Crude To Mexico As Shale Oil Flows?,” by Gillian Rich
  • The Journal Record, 06/12/2015, “Hamm: Congress must lift the ban on U.S. oil exports,” by Harold Hamm

From Our Blog This Week:


Stay Tuned…

  • 06/23/2015 – “A New Era In American Energy” an event by The American Petroleum Institute

Be sure to click HERE and check us out on Twitter by following us at @UnlockCrude so you can stay current by receiving daily updates about the most important news and discussions surrounding the crude oil exports conversation.


Crude Oil Export Benefits At the Forefront of House Small Business Committee Debate

The House Committee on Small Business held a hearing today titled, Crude Intentions: The Untold Story of the Ban, the Oil Industry, and America’s Small Businesses. The committee heard from a panel of small business owners who shared their views on how removing the crude oil exports ban will lead to economic prosperity and increased job growth.

Committee Chairman Rep. Steve Chabot (R–OH) started the hearing by discrediting the myth that lifting the current oil exports ban is not relevant or pertinent to small businesses. Because of our current export policy, “Our increase in production has not been met with an increase in capacity to refine this oil, which creates a bottleneck that forces producers to slow or halt production. When this happens it doesn’t hurt the big guys, it hurts the small producers and their tertiary partners most of all,” Chabot stated.

Allowing U.S. crude oil exports would open domestic producers to the global energy market and diversify the market, preventing an economically detrimental oversupply. Rather than unnecessarily restrict ourselves, we must take advantage of our abundance by exporting to the international market. This would create hundreds of thousands of new jobs for businesses of all sizes in the process.

Chabot’s claim is supported by the findings from a study conducted on behalf of The Small Business Entrepreneurship Council (SBEC). In the report, SBEC found the domestic oil and gas sector is overwhelmingly comprised of small and medium sized businesses. Which means the benefits of new jobs and good wages resulting from expanded energy exports will extend well beyond a select few industries and will permeate throughout the economy.

Panelist and Ohio small business owner Dale Leppo shed light on how updating the current energy policy to allow exports would provide immediate positive results for American businesses nationwide. Referencing a recent IHS study, Leppo points out that lifting the ban would increase production, which will drive substantial new investment in products and services throughout the crude oil supply chain, generating up to $63 billion of economic output nationally and up to $1.8 billion in Ohio alone.

Businesses big and small will undoubtedly benefit from increased crude oil exports. Conversely, both stand to miss out if nothing is done.  Supporters of updating our outdated crude oil export policy must continue to highlight the benefits to the nation.


Harvard and BCG: Time to Export U.S. Oil and Gas

Last week,  Harvard University Business School teamed up with The Boston Consulting Group (BCG), to release a new report discussing how America’s unconventional oil and gas resources are currently the single largest opportunity for the U.S. economy. “America’s Unconventional Energy Opportunity” lays out a “win-win pathway” involving 11 actions the U.S. should implement in order to capitalize on America’s abundant energy resources. One of those steps is “eliminating outdated restrictions on gas and oil exports.”

The study makes clear that the highest potential for tapping into the economic and geopolitical benefits would come as a result of enabling energy exports. Specifically, the study says immediate steps include lifting the ban on crude oil exports to all World Trade Organization nations and removing restrictions to Department of Energy permitting of LNG export projects. The authors state, “With abundant resources, restrictions on exports created in response to the 1970s’ energy crises are no longer needed, and exports would boost U.S. economic and job growth while benefitting friendly nations.”

In their analysis they found that allowing oil and gas exports could create an additional $23 billion in Gross Domestic Product (GDP) and around 125,000 new U.S. jobs by the year 2030. At the same time, crude oil exports would increase the competitiveness of domestic oil production without affecting U.S. consumers. In other words, the U.S.’ presence in the global energy market, as well as its abundant supply of energy, would effectively require competing nations to adjust accordingly. This ultimately is more beneficial for energy consumers.

While the specifics of this study’s findings are new, the overall conclusion is anything but. Lifting the ban on crude oil exports creates jobs and a higher overall GDP. We must continue pushing lawmakers for real and positive policy changes that will benefit our economy and our nation in the long run.


In Case You Missed It (June 5th -12th)

Energy exports remained in the spotlight on Capitol Hill this week. At a Thursday hearing on energy accountability and reform legislation, Senator Lisa Murkowski (R-AK) supplemented her efforts to repeal the crude oil export ban with the release of a blueprint outlining the global energy security benefits of granting export exemptions to our allies and trading partners. In discussing her report, the Chairwoman of the Senate Committee on Energy and Natural Resources stated, “Lifting the ban will bring an array of benefits to our nation: more jobs, more revenues, more production, more security, and more diplomatic leverage on the international stage.” Additionally, she reminded her fellow committee members of something not often mentioned: the Obama Administration has the executive authority to approve oil exports to U.S. allies on a case-by-case basis.

In this week’s news, multiple media outlets featured op-eds and articles calling for action on the part of our legislators to finally eliminate the 40 year-old ban on crude. Drs. Margo Thorning and William Shughart recently published an op-ed in Roll Call, which discussed the release of their most recent collaborative report on this issue. In their piece, the two economists highlight the report’s conclusions that after extensive evaluation, the benefits of crude exports are far too valuable to continue to overlook. The Hill published an op-ed by former Democratic U.S. Rep. Michael Andrews of Texas, in which he emphasized that by failing to replace the current restrictive policy on energy exports, we are not adhering to the free trade principles we profess to our allies.

This week’s notable op-eds/articles:

  • Houston Chronicle, 06/05/2015, “End export ban,” by Editorial Board
  • Fuel Fix, 06/09/2015, “Murkowski releases road map for countries to seek U.S. crude exports,” by Jennifer A. Dlouhy
  • Dickinson Press, 06/10/2015, “Cramer calls for repeal of oil export ban,” by Andrew Wernette
  • Forbes, 06/10/2015, “Exporting U.S. Crude Oil is a Moral Obligation,” by Jude Clemente
  • The Financial, 06/10/2015, “U.S. Chamber’s Harbert Urges Senate Panel to Lift Oil Export Ban,” by Temur Tatishvili
  • E&P Magazine, 06/10/2015, “It’s Time For A Game Changer: Oil Exports,” by Velda Addison
  • Tulsa World, 06/10/2015, “Doug Polk: Time to end U.S. ban on crude oil exports,” by Doug Polk

From Our Blog This Week:

Stay Tuned…

  • 06/15/2015 – EIA Energy Conference
  • 06/17/2015 – House Committee on Small Business Hearing; “Crude Intentions: The Untold Story of the Ban, the Oil Industry and America’s Small Businesses.”

Be sure to click HERE and check us out on Twitter by following us at @UnlockCrude so you can stay current by receiving daily updates about the most important news and discussions surrounding the crude oil exports conversation.


Senator Murkowski’s Case to Remove the Crude Oil Export Ban

As promised, this week Senator Lisa Murkowski (R-AK) took the next step in advancing efforts on Capitol Hill to end the ban on crude oil exports from the U.S. During a hearing in the Senate Energy and Natural Resources Committee discussing energy accountability and reform legislation, the Chairwoman introduced her newest report on this issue. The report titled, “Rendering Vital Assistance: Allowing Oil Shipments to U.S. Allies” specifically outlines how granting exemptions to allies and trading partners from the crude oil export ban would enhance global energy security.

“Allowing such shipments would send a powerful signal of support and reliability at a time of heightened geopolitical tensions in much of the world. The mere option to purchase U.S. oil would enhance the energy security of countries, such as Poland, Belgium, the Netherlands, India, Japan, and South Korea, even if physical shipments did not occur,” Senator Murkowski stated at the hearing.

The report also outlines, as Senator Murkowski touched on in her remarks, that while legislative efforts aimed at repealing the crude oil export ban are already in progress in Congress, the authority to allow greater exports to U.S. allies has been already explicitly delegated by Congress to the Administration.

Finally she also notes the consensus that we are seeing across the broad spectrum from stakeholders on this issue: removing the ban make sense. “Lifting the ban will bring an array of benefits to our nation: more jobs, more revenues, more production, more security, and more diplomatic leverage on the international stage. You don’t have to take my word for that; you can also look at the growing list of experts and studies that agree with my analysis,” Murkowski said.

Senator Murkowski makes abundantly clear that the United States urgently needs to update policies that are hindering American energy exports, especially crude oil. Like other commodity-based systems, the free market should dictate supply, demand, and the price of crude oil. There is no valid economic or national security justification for the perpetuation of restrictive energy export policies, including those on crude oil.


Hispanic Leadership Fund: The Economic Benefits of Lifting the Ban on Crude Oil Exports

A paper released a few days ago by the American Council for Capital Formation lays out the significant economic benefits the United States could reap should Congress and the Administration allow crude oil to be exported to other countries, which is currently banned by law.

“The Economic Case for Lifting the Crude Oil Export Ban” was authored by Dr. Margo Thorning, Senior Vice President and Chief Economist for the American Council for Capital Formation, and William Shughart, Research Director for the Independent Institute.

The authors outline how lifting the ban on crude oil exports would lead to a surge in domestic job growth, an increase in U.S. GDP, and create downward pressure on fuel prices.

Drs. Thorning and Shughart analyzed the unanimous conclusions drawn from multiple macroeconomic studies published over the last year, including the positive effect eliminating the ban on crude oil exports will have on the rate of domestic job growth.  They examined studies from research firms IHS and ICF International, as well as nonprofit research from the Aspen Institute, the Brookings Institute, and Resources for the Future.

Several of those studies focused on job creation. According to the Aspen Institute study, allowing crude oil exports will generate 216,000 new construction jobs in 2017 alone. Furthermore, the manufacturing sector would gain an average of 37,000 new jobs per year through 2025.

The IHS report similarly touches on the positive economic effects that would result of taking action on crude oil exports.  Along with creating between 394,000 and 859,000 new jobs each year nationwide, the U.S. GDP is projected to increase annually between $86 and $170 billion from 2016 to 2030 period. Taking advantage of this potential for job growth would go a long way towards maintaining an efficient and prosperous economy.

Notably, last year IHS released a similar study on job growth in the energy industry that highlighted how minorities are projected to fill an unprecedented number of those jobs. In the oil, natural gas and petrochemical industries, jobs for minorities will increase from one-quarter of total jobs in 2010 to one-third by 2030. That report projects that of up to 1.3 million new job opportunities predicted by 2030, almost 408,000 positions—32 percent of the total—will be held by African American and Hispanic workers.

The United States is in the midst of an energy boom and it is well past time for us to start taking advantage of our abundance of energy resources. The Thorning and Shughart paper notes that a policy change in U.S. exports of crude oil would mean more investment and production here at home. Congress and the Obama Administration should take action to lift the outdated ban on crude oil exports before the opportunity slips away.

The Hispanic Leadership Fund is a non-partisan advocacy organization dedicated to strengthening working families by promoting common-sense public policy solutions rooted in free enterprise, limited government, and individual freedom.


Oil Exports: Less a Partisan Issue, More an Economic Issue

At a time when most issues in America are hotly debated between Republicans and Democrats, the debate over crude oil exports increasingly stands out as one that is becoming less about political ideology and more about making economic sense. Former Democratic U.S. Representative Michael Andrews of Texas, penned an op-ed in The Hill in which he adds his name to the growing list of Democrats who support what is widely perceived as a “Republican” stance on the energy exports issue. His op-ed underlines the sound economic case for U.S. energy exports, specifically oil, and how they will improve trade relations with our foreign allies, while boosting job creation here at home.

Andrews emphasized our nation’s commitment to free trade and how we contradict ourselves by continuing to adhere to our outdated policy on energy exports.  “It is inconsistent for the United States to demand open markets by our Asian trading partners while blocking the exportation of domestic crude oil. This position undermines the very arguments America is making to its strongest competitors,” Andrews wrote. In order for other nations to take the U.S. seriously, we must practice the economic principles that we as a nation were built upon. No exceptions.

Lending a hand to our trade partners in Asia, by exporting crude oil would also lead to a more competitive energy market, which ultimately benefits the consumer. Should the U.S. be allowed to enter that market, our allies who continue to remain heavily dependent on other restrictive sources of oil, would gain access to a plentiful and affordable source of energy via the U.S., thereby requiring competing nations to adapt and begin to accommodate importing nations, or be pushed out of the energy market altogether.

It’s time to change with the times and revise an antiquated 40 year-old policy on oil exports. Earlier this year, Democratic Senator Heidi Heitkamp of North Dakota said it best: “To build a strong future for our country, we need policies that help our country prosper, not policies that are four decades old and in dire need of updates.” Heitkamp, along with the Republican Chairwoman of the Energy and Natural Resource Committee Lisa Murkowski of Alaska, introduced a bill just last month that would eliminate the crude oil exports ban. Regardless of political affiliation, the geopolitical and economic benefits of lifting the ban are undeniable.


In Case You Missed It (May 30th – June 5th)

On Capitol Hill this week, energy exports made an appearance during debate surrounding Senate consideration of H.R. 1735, the National Defense Authorization Act for Fiscal Year 2016. On Thursday, both Senate Energy and Natural Resources Committee Chairwoman Lisa Murkowski (R-AK) and Senator John Cornyn (R-TX) announced amendments to the bill that endorses crude exports. Senator Murkowski spoke on the floor about her amendment, detailing its provisions which would require the Department of Energy to look at the effects of lifting Iran sanctions on the global market and 30 days after that report, allow crude oil to be exported under the same rules and regulations as petroleum products.

Additionally, Dr. Margo Thorning, senior vice president and chief economist of the American Council for Capital Formation, and Dr. William Shughart, Strata fellow, unveiled a new collaborative economic report this week. Their report “The Economic Case for Lifting the Crude Oil Export Ban,” compiled the findings from numerous studies conducted by notable public policy institutions; all of which highlight the benefits of lifting the ban on crude oil exports. An increase in domestic job growth, boost in overall national GDP, and a downward pressure on fuel prices are among the positive economic effects of repealing this outdated energy policy. 

This week’s notable op-eds/articles:

(In case you missed it) Click HERE for ACCF’s brand new report on behalf of Dr. Margo Thorning and Dr. William Shughart.

  • World Oil, 06/05/2015, “The time to end crude oil export ban is now, says Sen. Murkowski,”
  • com, 06/04/2015, “Lift the export ban on U.S. crude oil,” by Editorial Board
  • Valley News, 06/03/2015, “Lawmakers Urge Crude Oil Export Ban be Lifted,” by Nick Starling
  • Platts, 06/01/2015, “US oil exports seen as key to security: Regulation and Environment,” by Brian Scheid
  • Inforum, 05/31/2015, “Letter: Lifting ban on crude exports will lift ND, US,” by Ron Ness
  • San Antonio Business Journal, 05/29/2015, “Gov. Abbott signs resolutions to lift crude oil export ban, speed LNG exports,” by Sergio Chapa

From Our Blog This Week:

Stay Tuned…

  • 06/09/2015 – Hearing on Energy Accountability and Reform Legislation

Be sure to click HERE and check us out on Twitter by following us at @UnlockCrude so you can stay current by receiving daily updates about the most important news and discussions surrounding the crude oil exports conversation.


Amendments on Defense Authorization Bill Push For Crude Exports

This week the Senate began debate on the National Defense Authorization Act for Fiscal Year 2016 (HR 1735). While many amendments were announced, two were focused on making sure the U.S. utilizes our energy renaissance and becomes an influential player on the global crude oil market.

On Thursday, both Senate Energy and Natural Resources Committee Chairwoman Lisa Murkowski (R-AK) and Senator John Cornyn (R-TX) announced amendments to the bill that endorses crude exports. Senator Murkowski spoke on the floor about her amendment, detailing its provisions which would require the Department of Energy to look at the effects of lifting Iran sanctions on the global market and 30 days after that report, allow crude oil to be exported under the same rules and regulations as petroleum products. While discussing the amendment she stated, “While the world may have changed, our nation’s role as a global leader has not eroded… this is an opportunity to prove that is has not eroded… I am here today to tell our colleagues that the time to legislate on oil exports is now and the bill the that we have in front of us, the National Defense Authorization Act, led by our colleague from Arizona, I think is the perfect vehicle to advance this on.”

The amendment from Senator Cornyn, while similar, also supported natural gas exports in order to aid vulnerable United States allies facing market volatility and threats of aggression by countries who use energy as a political tool. In a press statement he describes the amendment saying that “These amendments would strengthen the strategic hand of the United States in a world that grows more complicated by the day, not to mention more dangerous.”


Infographic: Studies Conclude, Lifting Ban On Crude = Increased Economic Benefits

After a thorough review of five highly respected, rigorously sourced macroeconomic studies, Unlock Crude Exports and Strata have laid out the significant domestic economic benefits as well as the geopolitical impact for our nation should Congress and the Obama Administration eliminate the outdated ban on the export of U.S. crude oil. Check the below infographic that shows the economics are clear, it is time to update our policy on crude oil exports from the U.S.

Infographic accf