ConocoPhillips CEO Ryan Lance Testifies Before Senate Energy and Natural Resources Committee on U.S. Crude Oil Export Policy
ConocoPhillips (NYSE: COP) Chairman and CEO Ryan Lance today testified
to the benefits of lifting the outdated ban on U.S. crude oil exports.
During his testimony, Lance noted that removing the ban has supporters
from both parties, from all regions of the United States, and has been
endorsed by virtually all economic studies.
Ryan Lance, ConocoPhillips Chairman and Chief Executive Officer (Photo: Business Wire)
“Given that America’s oil and natural gas renaissance has fundamentally
changed the global energy landscape, this policy must be repealed if the
United States is to fully realize the benefits associated with our new
energy abundance,” Lance said. “The oil export ban must be lifted to
help sustain this transformation; maintain our energy security; and
maximize the benefits to our economy, the American consumer and our
country’s geopolitical standing.”
In his written testimony, Lance noted that a growing body of independent
research supports these perspectives. In addition, a national survey
released in January by Reuters shows
that the public agrees, finding that by a 15 point margin Americans
believe it’s time to allow domestic oil producers the ability to sell
crude oil to customers in other countries, so long as exports do not
increase gasoline prices.
Lance cited nearly a dozen economic analyses by research groups, energy
consultancies and government entities that have concluded that gasoline
prices would decrease if crude oil exports are permitted. As Lance
noted, U.S. gasoline prices are determined by global gasoline prices,
which in turn track global oil pricing trends. Adding new oil supplies
to the global market from U.S. exports would put downward pressure on
world oil prices, and thus fuel prices.
In addition to benefiting consumers at the pump, exporting crude oil
would stimulate demand for domestic production, yielding substantial
stimulation for the U.S. economy. For example, every new oil industry
production job would create three jobs in the supply chain and another
six jobs in the broader economy. Contributions to gross domestic product
would also multiply: every dollar created in the oil sector generates
two dollars in the supply chain.
These benefits can extend to the geopolitical arena. The U.S. energy
renaissance has shifted the energy market's center of gravity away from
unstable areas of the world, toward North America. Allowing crude
exports would help continue this trend. By making up for production
losses in other countries, U.S. exports would help reduce market
volatility, create new markets and provide supply reliability and
diversity for countries now dependent on less-secure sources.
Read Lance’s written testimony.
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ConocoPhillips is the world’s largest independent E&P company based on
production and proved reserves. Headquartered in Houston, Texas,
ConocoPhillips had operations and activities in 27 countries, $53
billion in annual revenue, $117 billion of total assets, and
approximately 19,100 employees as of Dec. 31, 2014. Production from
continuing operations, excluding Libya, averaged 1,532 MBOED in 2014,
and proved reserves were 8.9 billion BOE as of Dec. 31, 2014. For more
information, go to www.conocophillips.com.
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