Jul 7, 2015 IPAA to President Obama: Lifting Restrictions on Exporting U.S. Crude Surplus Will Benefit Consumers, Businesses, National Security
WASHINGTON, D.C. – Today, Independent Petroleum Association of America (IPAA) President and CEO Barry Russell sent a letter to President Barack Obama in support of efforts to lift the 1970s-era restrictions on exporting surpluses of United States crude oil to the global marketplace. In the letter, Russell outlined how repealing the 40-year-old crude exports ban would benefit American consumers, businesses, and national security. Russell also pointed to over twenty non-partisan economic studies that have all agreed that repealing the crude oil export ban will lead to more American jobs, increased energy production, downward pressure on U.S. gasoline prices, greater energy security, improvement to the U.S. balance of trade, and would strengthen America’s geopolitical standing around the world.
“The American energy renaissance has created an historic opportunity for the nation, for the benefit of consumers, businesses, and national security,” wrote Barry Russell, IPAA President and CEO. “To continue growing as an energy superpower, America must have policies that reflect modern energy markets, rather than policies based on a market that existed in the 1970s.
“American families and businesses in every state stand to benefit as crude exports will increase the United States Gross Domestic Product and stimulate economic activity across the nation. Adding a surplus of America’s crude oil into the world market would reduce market volatility, stabilize oil prices that are set by the global market, and therefore lower U.S. gasoline prices, which are based on international oil prices.
“As the Administration did by taking action regarding condensates, IPAA urges it to give impartial consideration to the economic and consumer benefits that could result in completely lifting the restrictions on U.S. crude oil exports as wholly in America’s national interest. IPAA stands ready to work with this Administration on advancing thoughtful, commonsense decisions on crude oil exports.”
Currently, United States law prohibits most unprocessed American crude from being sold overseas, but it does not limit the sale of refined petroleum products, such as gasoline, diesel and jet fuel to foreign buyers. By adding a surplus of American crude oil to the world market, crude oil exports would help lower U.S. gasoline prices, allowing families to keep more of their hard-earned money.
IPAA and its member companies have made lifting the export restrictions on the United States’ surplus of crude oil a top priority this year. Last month, IPAA President Barry Russell sent a letter to House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) in support of his recent comments on U.S. crude oil exports. IPAA also voiced its support for legislation authored by Senate Energy and Natural Resources Committee Chairman Lisa Murkowski (R-Alaska) and Senator Heidi Heitkamp (D-N.D.), which seeks to lift the outdated ban on oil exports. For more information on IPAA’s efforts and answers to common questions on this important issue.
About the Independent Petroleum Association of America
The Independent Petroleum Association of America (IPAA) is the leading, national upstream trade association representing thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 95 percent of the nation’s oil and natural gas wells. These companies account for 54 percent of America’s oil production, 85 percent of its natural gas production, and support over 2.1 million American jobs.