The Domestic Energy Producers Alliance is a nationwide collaboration of 15 coalition associations – from California to West Virginia, Texas to Montana – representing about 10,000 individuals and companies engaged in domestic onshore oil and natural gas exploration and production (E&P). We believe in seeking common ground, and in common sense solutions to the challenges that face us in our businesses, including our relationship with the federal legislative and executive branches of government. In only its fifth year, DEPA now represents a majority of the individuals and companies responsible for the current renaissance in American oil and natural gas production.
Washington, DC-based Brookings Institute published a new report September 9 in favor of lifting current US restrictions on the export of crude oil. The report [view] comes to the conclusion that discontinuing the export ban would help lower US gasoline prices for consumers, increase profits for producers and encourage more production on US soil - all of which are good for continued economic growth and productivity and American energy security.
The recent decline in crude oil prices takes me back to the winter of 2008 when prices took a roller-coaster ride south after reaching historic highs during the summer.
Crude oil prices dropped to a low of $33.87 on Dec. 20, 2008, on the New York Mercantile Exchange after reaching $140 per barrel. Gasoline prices peaked at $4.11 per gallon and tumbled in record time to $1.64 per gallon in December.
In Congress, there are essentially three kinds of laws: Those that achieve their intended goals; those that don’t; and those that – by flaw of design or implementation – somehow do the complete opposite of what they intended.
One example of this third kind of law is the 40-year ban on the export of US crude oil.
The crude oil export ban was implemented in 1975 to insulate America from the energy price and supply shocks that crippled our economy after the 1973 Arab oil embargo. The reasons for the ban are no longer relevant, and by keeping it in place, we are actually making the US less competitive and energy supplies less secure and more expensive—the opposite of its intended effect.
Now, with the recent and rapid increase in domestic US oil and gas production, it is time for Congress to lift the ban on US crude oil exports.
There’s been a lot of talk lately about how the prices of oil are affecting production in the massive US shale plays. While a lot of analysts disagree on how low oil prices must go before shale oil production becomes unprofitable, not too many people are talking about the mom-and-pop producers.
Now that the election is over and Congress has completed its basic organizational activities for the new session starting in January, it is important to take a step back and examine the state of play on tax reform.
The key committees in the House and Senate responsible for tax reform legislation will both be headed by individuals committed to actually trying to pass significant tax reform during the next two years.