Trade groups for the U.S. oil and natural gas industry have released an analysis that shows significant economic benefits to American consumers from the domestic use and export of fossil fuels harvested from the nation’s abundant energy resources.
The study, conducted by the consulting firm ICF and released by the American Petroleum Institute (API) and the American Exploration and Production Council (AXPC), laid out the data.
The announcement about the study said:
[The study] analyzed the six-year period since a bipartisan Congressional majority lifted a ban on exporting U.S. crude oil in December 2015. The study found that enabling open markets increased oil and natural gas development in America, which, over the six-year period, reduced global oil prices by an average of $1.93 per barrel; added $161 billion to U.S. GDP; and increased jobs in the U.S. by nearly 50,000, on average.
API President and CEO Mike Sommers said in a statement:
American energy leadership doesn’t just deliver significant benefits to Americans – fueling the U.S. economy and American jobs, delivering reliable energy, and helping put downward pressure on prices, but it also strengthens global security and supports our allies. U.S. 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 U.S. 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.
AXPC CEO Anne Bradbury said in a statement:
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.
The study found that ending a ban on U.S. crude oil exports has:
- Decreased U.S. Consumer Expenditures on Refined Products and Natural Gas by $92 billion: Higher U.S. oil production expanded global oil supply, reducing global crude oil and refined product prices. Because there is free trade in petroleum products, U.S. fuel consumers have benefited from these lower product prices
- Improved the U.S. Trade Balance by $178 billion: Higher U.S. exports have improved the U.S. trade balance, reducing the US trade deficit by a measurable amount.
- Increased U.S. 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.
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