HOUSTON – ConocoPhillips (NYSE: COP) Chairman and CEO Ryan Lance today testified to the benefits of lifting the outdated ban on U.S. crude oil exports.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.
“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America’s oil and natural gas renaissance has fundamentally changed the global energy landscape, this policy must be repealed if the United States is to fully realize the benefits associated with our new energy abundance,” Lance said.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.
--- # # # ---
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.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; difficulties in developing new products and manufacturing processes; unexpected cost increases; international monetary conditions; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; and general domestic and international economic and political conditions; as well as changes in tax, environmental and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.