The chief executive of ConocoPhillips has called for US exports of surplus crude oil.
Ryan Lance told policymakers attending a briefing at the Centre for Strategic and International Studies (CSIS) that the nation’s approaching surplus production of crude oil offers and opportunity for expanded global trade through exports.
He said America could sustain the job creation and economic stimulation powered by the US energy renaissance, while putting downward pressure on consumer fuel prices and improving global energy security.
Mr Lance said:”The US energy situation has improved significantly since the ban was put in place.
“Government should recognize the new reality of the renaissance that has transformed North America from energy scarcity to abundance, and enable the industry to keep it going.
“We have just scratched the surface of its potential, and can help ensure that the renaissance continues as an engine of long-term economic growth by exporting our excess crude oil into the world market.
“Thanks to our new energy abundance, domestic refiners would still have all the oil they need, and would still enjoy a competitive advantage over foreign refiners.”
He also said the nation’s growing production of light oil from shale rock is a mismatch with many Gulf Coast-area refineries that years ago were configured to process heavy oil.
As a result, US light oil production already exceeds domestic refining capacity on a seasonal basis, and will do so year-round by 2017.
By 2020 exports of 1.5 million to 2.0 million barrels per day would be needed in order to avoid needlessly hindering industry development activity, with resulting harm to the national economy.
Increasing domestic capacity to refine this light oil would require massive investment on the part of refiners, as well as securing of air permits for new construction.
Further, it would be less efficient and less economically beneficial to the United States than exporting excess high-value light oil while continuing imports of lower-value heavy oil from such reliable sources as Canada.
He added: “Multiple studies confirm the economic benefits of oil exports.
“These include increased US production, a higher gross domestic product and average household income, improved balance of trade, creation of one million new jobs at the peak, lower consumer fuel costs, and greater revenue generation for government.
“We urge the federal government to recognize these realities. The Administration and Congress should act immediately.”
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