WASHINGTON, DC – The U.S. energy industry will be able to create thousands of new jobs in America and provide a stable oil market to our allies around the world once it is freed from the outdated federal prohibition against exporting crude oil, Congresswoman Kay Granger said Friday.
Granger said she was proud to cast a vote to end the 40-year-old crude oil export prohibition, which was included in the Fiscal Year 2016 omnibus Appropriations bill.
“Getting rid of the policy blocking U.S. crude oil exports is one of the most important decisions Congress has made this year,” Granger said. “We need to take away control of the world oil policy from the OPEC oil ministers and put it in the hands of American innovators and workers.”
Granger co-sponsored legislation passed by the House which was authored by Congressman Joe Barton of Texas to eliminate the prohibition. The provisions in the omnibus Appropriations bill were based on that legislation.
Ukraine and many of the nations of Europe receive much of their energy supply from Russia, and other nations are dependent on supplies from unstable nations in the Middle East like Libya. U.S. oil producers can provide a stable supply that will reduce the possibility of blackmail policies, Granger said.
“Creating global security is more than just providing military support – giving our allies an energy supply they can depend on is extremely important,” Granger said. “We have the best energy technology, the most creative business minds and the most reliable source of crude oil. Releasing America’s crude exports into the global oil market will bring rewards to us and our allies.”
Providing US oil producers access to the global market will have tremendous benefits for the U.S. economy, Granger said. The added business will bring as many as 300,000 new jobs nationwide – 35,000 just in Texas, where the energy industry has suffered recent job losses. The Brookings Institute estimates that allowing crude oil exports could increase U.S. gross domestic product by as much as $1.9 trillion by 2039.
Stability and free market competition will also benefit U.S. consumers with lower prices at the pump, and help avoid the price spikes seen in the past decade.
“We have an abundance of crude oil production, our refineries are running at near capacity, our storage is at record highs, and this will help our producers move forward into the world market,” Granger said. “The elimination of this out-of-date policy is a win-win for the American economy and our global allies.”
The Government Accountability Office report on allowing U.S. oil exports is available here: