The trade report released Aug. 6 by the U.S. Department of Commerce shows U.S. energy exports are revitalizing the economy and shifting the balance of power around the world, according to an oil and gas industry group.
“Domestic oil and natural gas production helped drive record exports last year, and our ability to impact global markets continues to grow,” said American Petroleum Institute (API) chief economist John Felmy. “But America’s potential as an energy superpower remains limited by outdated trade restrictions that prevent more U.S. oil and natural gas from reaching global markets. Lifting these barriers will mean more jobs and a more powerful position — both economically and diplomatically.”
Felmy added that hydraulic fracturing and horizontal drilling have allowed U.S. energy exports to put a major dent in the trade deficit.
“Today’s reports shows that exports of crude oil and petroleum products are up more than $1.2 billion from the same month last year, to $12.7 billion,” he said. “For the year to date, the total trade deficit for crude oil and petroleum products is down $20.4 billion from the same period last year.”
In an API announcement, Felmy said U.S. energy exports can further reduce the impact of unrest overseas and limit the influence of foreign suppliers that dominate the market If policymakers act to allow free trade. He added that studies show that crude oil exports would promote higher energy production and put downward pressure on consumer prices.
“By acting now, we can send a major signal to world markets that competitors overseas cannot ignore,” he said. “Congress and the administration must act quickly to accelerate Department of Energy approval of liquefied natural gas (LNG) projects and lift 70’s-era restrictions on crude oil exports.”Tags: API, crude oil, exports, free trade, LNG, LNG exports