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DEPA NEWS
  • 21
    June

    America's self-punishing oil export ban

    Harold Hamm

    Wall Street Journal

    Amid news of a pending nuclear deal with Iran, some OPEC countries have struck agreements with refineries in Asia to avoid losing market share when Iranian oil comes back on the market. If US policy will allow Iran to export oil, shouldn’t it allow America to do the same? Clearly, our allies would rather get their oil from America than Iran if given the choice. But without the ability to export, the US is not even in the game.

    Congress must lift the ban on US crude oil exports. The ban is a terrible relic of the Nixon era that harms the American economy. As Sen. Lisa Murkowski (R-AK) has pointed out, restrictions on oil trade effectively amount to domestic sanctions. Combined with a mismatch in refining capacity, the ban on oil exports is creating a significant discount for US light oil at no benefit to anyone except refiners and their foreign ownership. It has cost US states, producers and royalty owners $125 billion in lost revenue in four years, according to industry estimates.

    Foreign producers are using their heavy oil—and the US ban on exports—as a weapon against America. Over the past three decades countries such as Venezuela, Mexico, Saudi Arabia and Canada have overtaken US refining capacity to run their heavy crude in American refineries and capture a large portion of the US market. Without firing a shot, they have disadvantaged American oil and interests. [more]

  • 11
    June

    Harvard study: US should ditch outdated oil export ban

    Richard Valdmanis

    Reuters

    The United States must lift an "outdated" ban on oil exports to take full economic and geopolitical advantage of its hydraulic fracturing boom, according to a study by Harvard Business School and Boston Consulting Group released on Wednesday.

    Lifting the 40 year-old ban imposed after the Arab oil embargo and easing restrictions on liquefied natural gas export terminals would add $23 billion to the economy by 2030, create
    tens of thousands of jobs, and provide the United States with additional clout overseas, the paper said. [more]

  • 10
    June

    After plunge in oil prices, hope fades for group of long-beleaguered workers

    Jim Tankersley

    Washington Post

    Other men bought big houses or new pickups with their oil money. Mike Gillham bought his favorite bar. He heads there most nights, to lug in more beer, to throw darts with his regulars, to smoke Camels and sit with his wife and wonder how to keep getting by, now that his oil job is gone.

    Four years ago, Gillham stumbled upon what is more or less an economic lottery ticket for an American man whose education stopped after high school. It paid more than any other gig he’d had — more than all three of the jobs, combined, that he’d been working simultaneously before a buddy called and invited him into the well-paid world of the oil and gas industry.

    The crash in global oil prices late last year, with oil prices plunging from nearly $110 to about $45 for a barrel of West Texas crude, burned that lottery ticket. Gillham and thousands of men like him lost their jobs.

    “It was like somebody knocked the wind out of you, a little bit,” Gillham said.

    The collapse in oil prices came as a surprise to the nation’s oil workers. While there had been booms and busts before, this was supposed to a sustainable renaissance in American energy. And though oil has bounced back a bit — to about $60 a barrel — the pressure on American oil drillers isn’t subsiding. [more]

  • 20
    May

    The oil export ban harms national security

    Leon E. Panetta and Stephen J. Hadley

    Wall Street Journal

    The US is willfully denying itself a tool that could prove vital in dealing with threats from Russia, Iran and others.

    The United States faces a startling array of global security threats, demanding national resolve and the resolve of our closest allies in Europe and Asia. Iran’s moves to become a regional hegemon, Russia’s aggression in Ukraine, and conflicts driven by Islamic terrorism throughout the Middle East and North Africa are a few of the challenges calling for steadfast commitment to American democratic principles and military readiness. The pathway to achieving US goals also can be economic—as simple as ensuring that allies and friends have access to secure supplies of energy.

    Blocking access to these supplies is the ban on exporting US crude oil that was enacted, along with domestic price controls, after the 1973 Arab oil embargo. The price controls ended in 1981 but the export ban lives on, though America is awash in oil. [more]
  • 14
    May

    Lift crude export ban or continue to put American energy renaissance at risk, DEPA Chairman Harold Hamm says

    FOR IMMEDIATE RELEASE

    Contact: Pete Regan, DEPA Executive Director

    (405) 424-1699


    Since its inception more than 40 years ago, a lift of the US export ban was not seriously discussed until DEPA undertook a comprehensive education campaign to build the intellectual and public policy basis for lifting the ban. However, there is more work to be done.

    The Domestic Energy Producers Alliance (DEPA) is calling for industry-wide support of the “Energy Supply and Distribution Act of 2015,” introduced yesterday by Senators Lisa Murkowski (R-AK) and Heidi Heitkamp (D-ND), and 11 others. While this proposal represents a huge step forward in shaping public opinion for lifting the crude oil export ban, DEPA officials acknowledge there is more work to be done.

    “The key to securing Congressional action to lift the export ban is maintaining pressure on the political process,” said DEPA Chairman Harold Hamm. “There are many competing agendas in Washington. The industry must maintain constant pressure in the system, positioning lifting the export ban as a key factor in America’s economic, foreign policy and national security strength.”

    Lifting the export ban has economic and national security benefits for the United States, Hamm said. 

    Since October 2013, DEPA has led a highly-targeted campaign aimed at strategic Committee Chairs and congressional members on each of these public policy issues, said DEPA Executive Director Pete Regan. Since then, DEPA has been at the center of the battle to open free markets for the export of crude oil.

    “DEPA’s recognition of this issue may have seemed ahead of its time, but nobody is questioning it now,” Regan said.

    With DEPA’s support, exactly one year ago, April 1, 2014, US Congressman Michael McCaul (R-TX) introduced a bill to repeal the ban on exporting crude oil. Ten days later, then-current Senate Energy Committee Chair Mary Landrieu (D-LA) and Ranking Member Murkowski sent a letter to the Department of Energy to study the implications of ending the ban on US crude oil exports.

    The ultimate findings of that study, as published in the November 2014 IHS Energy report, Lifting the Crude Oil Export Ban Benefits US Consumers, were that lifting restrictions on crude oil exports would result in an increase of real household disposable income because of an investment-led expansion in economic activity and a lower unemployment rate.

    “We used that study and others to focus on explaining how the export ban affects US independents,” Hamm said. “Primarily by putting our current energy renaissance at risk.”

    He said the current lack of ability for US producers to compete on the global market “effectively eliminates American oil and gas development, drives oil and gas development overseas and eradicates high-paying, middle class US jobs.”

    Additionally, by creating and perpetuating a short-supply cycle in America, the export ban drives gasoline prices up and hits US national security by ensuring OPEC dominance and the power of hostile nations, Hamm said.

    “We expected this bipartisan legislation after the Congressional recess, and we are encouraging all of our industry partners to get behind the ‘Energy Supply and Distribution Act of 2015’ to continue the heavy lift of eradicating the US crude export ban,” Regan said.

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    About the Domestic Energy Producers Alliance: DEPA is a coalition of US independent producers, oilfield service companies, and 13 state and national oil and natural gas trade associations made up of 10,000 members and more than 10 million American royalty owners. DEPA supports the bipartisan legislation to lift the harmful crude export ban, an enforcement tool remnant of President Nixon’s failed 1970s policy on price controls.