Below are highlights from a letter between oil industry bodies and US Senators Murkowski and Heitkamp, expressing support for the Energy Supply and Distribution Act of 2015.
“Growing US production of shale formation oil and natural gas creates economic opportunities that have not existed for over five decades. Artificial limits on market options could restrict US benefits. Exports have a key role in keeping the development of US production on course.
“Production growth cannot continue at expected rates if the market is curtailed. Much like the export of gasoline and diesel fuels from American refineries now helps keep refining jobs in America, oil exports will enable the US to invest in more American shale development and keep those good jobs here. Moreover, because American gasoline prices are determined based on the international marketplace rather than the US market, exports of US crude oil will have a stabilising effect on gasoline prices as those increased oil supplies put downward pressure on the world marketplace and reduce price volatility for refined petroleum products.
“Similarly, from a national security perspective, the nation’s geopolitical interests are best served by providing a more stable market for international allies and trading partners. Providing US crude exports to our allies and trading partners weakens the power of unstable and unfriendly nations to manage crude oil supply, to dictate prices and to use their oil as a lever against our allies to the detriment of our nation’s international interests.
“The Energy Supply and Distribution Act draws a carefully crafted balance by opening the world marketplace to the export of US crude oil while reaffirming the authority of the President to constrain exports when compelling national interests require it. This balance assures that the American economy can benefit from the vast crude oil resource base that is now available for development while being protected if there is ever a need to do so.”
The bodies that wrote this letter are:
- Independent Petroleum Association of America.
- US Oil & Gas Association.
- Producers for American Crude Oil Exports.
- American Exploration & Production Council.
- American Petroleum Institute.
- US Chamber of Commerce.