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Page added on May 29, 2014
Yergin: Lifting Ban On Crude Oil Exports Would Boost US Economy
Ending the four-decade ban on U.S. crude oil exports would lower gasoline prices, create jobs and boost government revenues, according to a study by the energy arm of IHS, a global consulting firm.
STEVE INSKEEP, HOST:
NPR’s Business News starts with something a little crude. A new study is recommending the United States end its four-decade ban on crude oil exports. The report by the energy branch of the global consulting firm IHS says ending the ban would lower gasoline prices, create jobs and boost government revenues. NPR’s John Ydstie has more.
JOHN YDSTIE, BYLINE: The ban on crude oil exports was implemented in the 1970s, during an era of U.S. price controls and declining U.S. production. IHS Vice Chairman Daniel Yergin says ending the ban would create a broader market for now booming U.S. oil production. He says that would boost the amount of crude oil in the global market and lead to cheaper global gasoline prices.
DANIEL YERGIN: And that, in turn, would flow back into the U.S. – back to the gasoline pump – and would be about 8 cents a gallon less for American motorists than would otherwise be the case.
YDSTIE: U.S. gasoline prices are influenced by the global market because the U.S. already imports and exports gasoline. Yergin says the IHS study finds that the larger market for U.S. crude would boost U.S. production by 1.2 million barrels a day.
YERGIN: At the peak, it will translate into almost a million more jobs. And over the forecast period, it would translate into $1.3 trillion more government revenues.
YDSTIE: That would be the total over a 15-year period. The IHS study was funded by energy companies, many of which would benefit from a broader market for U.S. crude. But some refiners oppose lifting the ban because the large supplies of U.S. crude in the domestic market mean they can pay less for crude oil and make higher margins by shipping refined products abroad.
Some environmentalists oppose lifting the ban, arguing it will only encourage further use of fossil fuels. The left-leaning organization Center for American Progress also wants to keep the ban in place. It points to higher gasoline prices than emerged on the West Coast in the 1990s, when the export ban on Alaskan oil was temporarily lifted. John Ydstie, NPR News, Washington.
13 Comments on "Yergin: Lifting Ban On Crude Oil Exports Would Boost US Economy"
bobinget on Thu, 29th May 2014 6:34 pm
Create jobs? Lower gasoline costs?
So would repairing existing infrastructure, including
pipelines and bridges and flood control and schools and rail and water conservation and desalination . This excerpt from TODAY’s EIA report;
“U.S. crude oil imports averaged 7.8 million barrels per day last week, up by over 1.3 million barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 7.1 million barrels per day, 9.3% below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 725,000 barrels per day. Distillate fuel imports averaged 148,000 barrels per day last week.”
rockman on Thu, 29th May 2014 6:37 pm
as usual Danny Boy is speaking half truths. First, exporting oil, if it led to higher prices, would boost the economy of US oil companies…not the general economy IMHO. And today, as it has done for decades, exports a very large amount of gasoline since there’s no ban. That fuel is already sold at the global market price less transport.
Over 3 million bopd imported in the US is refined and the products shipped overseas. We don’t need to start exporting crude oil to lower global prices…all we need do is stop importing that 1.1 BILLION bbls of oil per year. That would probably put some downward pressure on global prices of gasoline.
bobinget on Thu, 29th May 2014 6:49 pm
Oh, BTW, crude consumption came to 19.1 Million Barrels every single day in the previous week.
If we are IMPORTING on average 7.1 million barrels
on three coastlines,
http://www.eia.gov/petroleum/supply/weekly/pdf/table7.pdf
We can’t acuse D. Yergin of being a ‘sell out’ because he has been mouth piece of Big Oil for decades.
Jimmy on Thu, 29th May 2014 7:19 pm
Letting oil and refined products flip back and forth between American and Canadian territory is a good idea. Take advantage of field-refinery proximity and transportation corridors to markets with an eye towards efficiency and less worry about the line on the map. Alberta has oil to sell and exports it but eastern Canada imports oil from abroad as they don’t have a pipeline from Alberta.
GregT on Thu, 29th May 2014 8:22 pm
“Ending the four-decade ban on U.S. crude oil exports would lower gasoline prices, create jobs and boost government revenues, according to a study by the energy arm of IHS, a global consulting firm.”
This only goes to show that consultants have the same degree of intelligence as the average person. They just figured out a way to make more money, with their stupidity. Kind of like the blind, leading the dumb.
Plantagenet on Thu, 29th May 2014 8:32 pm
The US already exports millions of barrels of oil. There is no ban on exporting refined oil and Obama has already waived the ban on exporting crude to Canada so US crude is exported via Canada now.
Makati1 on Thu, 29th May 2014 8:47 pm
Saw “Yergin”. Stopped reading.
Boat on Thu, 29th May 2014 9:12 pm
rockman,
sorry man…it was 2011
http://www.bloomberg.com/news/2012-02-29/u-s-was-net-oil-product-exporter-in-2011.html
As I have posted many times the affect of CHP and the low price of nat gas has caused our competive advantage for the US refiners over many parts of the world.
This is why many refineries are shutting down in europe. They use oil to heat the oil. The US is swithcing to nat gas to heat the oil. Hard to find numbers but have read a cpl times it equates to $2 per barrel diff.
dashster on Fri, 30th May 2014 3:30 am
Yergin claims that allowing us to export oil would boost production 1.2 million barrels a day. So his claim is that the slightly higher price on the international market would allow a big increase in production. Today Brent crude was $109.97 and US crude was $103.58. An extra $6.39 per barrel would give us another 1.2 million a day according to this guy. And he gets paid to make predictions.
But he adds that this 1.2 extra million barrels a day would add about a million jobs. So per his figures, it takes almost one person to produce one barrel of oil in the United States. Right.
charmcitysking on Fri, 30th May 2014 4:56 am
“The IHS study was funded by energy companies, many of which would benefit from a broader market for U.S. crude.”
I liked that part
Norm on Fri, 30th May 2014 11:19 am
Whose side is he on? ‘Terbin Yergin’.
Yeti on Fri, 30th May 2014 5:54 pm
How does a guy who’s PhD was in International Relations become The Oil Guru?
Nice of him to spend all of 15 pages in The Quest covering P.O., shortest chapter in the book and spent mainly taking a dump on Hubbert.
I smell shill.
rockman on Sat, 31st May 2014 11:16 am
Yeti – And would expect them to do: use an occasionally foul mouthed talkaholic like me that doesn’t puke out the company line? Even the owner of my non- public company doesn’t want folks to know who I work for. LOL.
You should have the look on the face of one of my VP’s years ago when I told him I had voted for President Carter.