WASHINGTON – The American Exploration and Production Council (AXPC) and the American Petroleum Institute (API) today released new analysis demonstrating the significant and growing economic benefits of America’s abundant crude oil resources for both domestic use and global export. The study, conducted by ICF International, analyzed the six-year period since a bipartisan Congressional majority lifted a ban on exporting US crude oil in December 2015.
The study found that enabling open markets increased oil and natural gas development in America, which reduced global oil prices by $1.93 per barrel over the six-year period; added $161 billion to US GDP; and increased jobs in the US by nearly 50,000, on average.
“As this analysis shows, lifting the ban on crude exports in 2015 saved Americans money at the pump, supported thousands of good-paying American jobs, and reduced our country’s dependence on foreign oil. At a time when Americans are hurting from the price at the pump, it’s clear that increasing the global supply of crude oil is critical to lower energy prices here at home and greater energy security around the globe,” said AXPC CEO Anne Bradbury.
“American energy leadership doesn’t just deliver significant benefits to Americans – fueling the US economy and American jobs, delivering reliable energy, and helping put downward pressure on prices, but it also strengthens global security and supports our allies,” said API President and CEO Mike Sommers. “US energy exports provides critical stability to the global market, supports our allies across the world who depend on American energy to meet their needs and strengthens American energy security here at home. If the US is not exporting energy, it leaves the door open for unstable nations or those with less stringent environmental standards to fill the void and reap the benefits.”
The new study analyzes the changes that have occurred in US oil and natural gas markets since Congress enabled crude oil exports compared to a hypothetical scenario where US oil exports remained in place. The study found that lifting the ban on US crude oil exports has:
- Decreased US Consumer Expenditures on Refined Products and Natural Gas by $92 billion: Higher US oil production expanded global oil supply, reducing global crude oil and refined product prices. Because there is free trade in petroleum products, US fuel consumers have benefited from these lower product prices
- Increased US GDP by $161 billion: The benefits of lower fuel costs for US consumers and higher revenues for US oil producers (due to higher output and higher domestic crude prices) outweighed revenue losses for US refiners, resulting in a net benefit to US GDP.
- Improved the US Trade Balance by $178 billion: Higher US exports have improved the US trade balance, reducing the US trade deficit by a measurable amount.
- Increased US Employment by an average of 48,000 jobs: Lifting the crude export ban has increased employment in the Upstream oil & gas sector, including derrick operators, first-line supervisors and managers, rotary drill operators, roustabouts, and service unit operators, and created direct, indirect, and induced jobs.
- Increased US Crude Oil Production by 1.8 billion barrels: Allowing US domestic oil prices to converge with international benchmarks, spurred more drilling activity leading to higher crude oil production, as well as higher production of associated natural gas and NGLs that come from oil wells.
Click here for more information on the ICF analysis.
About the American Exploration and Production Council:
AXPC is a national trade association representing the largest independent oil and natural gas exploration and production companies in the United States. We lead the world in the cleanest and safest onshore production of oil and gas, while supporting millions of Americans in high-paying jobs and investing a wealth of resources in our communities. Learn more at https://axpc.preview.ascenderstudios.com/
API represents all segments of America’s natural gas and oil industry, which supports more than 11 million US jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.