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Ending oil export ban would mean cheaper gasoline, Conoco exec says

  • The U.S. would enjoy benefits ranging from the creation of more than 1M jobs to a decline in gasoline prices if it ends its 40-year-old ban on exporting crude oil, according to ConocoPhillips (NYSE:COP) senior economist Helen Currie.
  • Lifting the ban would allow the world’s refineries to be able to make more gasoline and diesel because it would allow more efficient allocation of crude oil around the world, Currie says.
  • Although the U.S. will continue import oil from a number of countries, including the Middle East, Currie believes the U.S. probably will not import much light crude oil from the Middle East because of production from the Eagle Ford and other shale plays.
Comments (11)
  • Realtor_k
    , contributor
    Comments (215) | Send Message
     
    Why should US export oil when US consumers are still paying $4 per gallon for gasoline at the pump?

     

    Why sell US oil when US has limited supply -- compared to Saudi, Africa or Venezuela?

     

    To prove that we have enough for ourselves, first bring down the price of gasoline to less than $3 per gallon for US Consumers. In Saudi, Qatar or Venezuela, price of gas is less than $2 per gallon.
    25 Aug 2014, 01:11 PM Reply Like
  • James Sands
    , contributor
    Comments (2422) | Send Message
     
    They don't have the same demand relative to the supply though. I think our cost of fuel is priced quite well today. Keeping near this level over the next 5-10 year period would be a better result.....
    25 Aug 2014, 01:17 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2723) | Send Message
     
    There hasnt been a new refinery built in the US in 40 years, that affects the price of refined products too. US consumers must compete with global consumers for refined products, which are allowed to be exported. We're sending record numbers of barrels of diesel and gasoline overseas everyday.

     

    And I just paid $3.12/gallon for gas in central NJ, 32.9 cents of that goes to the state and federal government, and there's talk both nationally and locally about raising those taxes.
    25 Aug 2014, 01:55 PM Reply Like
  • eyeonfastball
    , contributor
    Comments (42) | Send Message
     
    where have you been all these years
    26 Aug 2014, 07:42 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (873) | Send Message
     
    Too many regulations and taxes for gasoline to sink in price.
    25 Aug 2014, 01:44 PM Reply Like
  • Lynell
    , contributor
    Comments (8) | Send Message
     
    Perhaps we need more refineries in the U.S.?
    25 Aug 2014, 01:46 PM Reply Like
  • redarrow5150
    , contributor
    Comments (1105) | Send Message
     
    Refinries are a lot like prisons...people are all for them but as long as there not near me.
    25 Aug 2014, 03:31 PM Reply Like
  • Lakeaffect
    , contributor
    Comments (1153) | Send Message
     
    Since there's so much oil sloshing around in America and obviously the price at the pump reflects this, perhaps a good place to start would be the removal of preferential tax treatment of oil exploration, development, production, refining and marketing.
    25 Aug 2014, 01:55 PM Reply Like
  • jarco
    , contributor
    Comments (1651) | Send Message
     
    The benefits outlined by Helen Currie are utter nonsense as is the Feds blessing to export "partially" refined product. The U.S. crude and natural gas assets are almost totally unrelated to the world supply and demand. We should care less about world refinery conditions or a "re-allocation" of crude. That's the worlds problem and not ours to solve.

     

    The US is approaching a self-sustaining energy status. If all US crude, refined product, and natural gas were restricted, domestic gasoline would drop to less than $2/gallon. Since gasoline is technically a specific by-product of crude refining (about 45% is Gasoline, 10% Kerosene/jet fuel, 30% Fuel oil/Diesel, 7% unusable residue, and the balance is Naphtha, Coke, Asphalt, etc,), restricting crude and gasoline export would result in the building of state of the art refineries creating thousands of construction jobs ranging from the initial build to distribution pipelines. All exports of energy related material would be subject to export tax the rate being continually established to assure low gasoline prices. Price supports (in this case a ceiling) would be administrated in a similar fashion to crop supports and Federal Reserve interest rate controls, for example. Low energy cost means lower cost of living for all Americans, much needed job creation, and not be distracted by the Keystone Pipeline and other projects ultimately in the best interest of governments outside of our own.

     

    Should anyone suggest this sounds like it comes from a liberal, union loving, left leaning democrat, forget it. This is a moderate registered life long Republican who has been a free enterprise investor most of his live. I drive a high priced vehicle, buy premium gasoline, and personally not financially affected by the pump price. Dividends and price gains from XOM, COP, etc. pays for all that and then some. However, I'm sick and tired seeing U.S. consumers, yes those literally driving our economy, getting shafted at the gas pump. I'm also sick and tired reading dribble from industry economists derived from what they learned from in text books and not reality.
    25 Aug 2014, 03:11 PM Reply Like
  • fhbecker
    , contributor
    Comments (124) | Send Message
     
    Jarco,
    Having trouble following the logic that halting or heavy taxing the export of refined products, which limits refinery profits, would result in additional refinery construction.
    I think history has clearly shown that price controls do not work, while the free market works quite well.
    26 Aug 2014, 09:25 AM Reply Like
  • Hendershott
    , contributor
    Comments (1612) | Send Message
     
    Better we capture the value added in downstream operations rather than have someone else capture that value, avoiding the resource economic trap.
    25 Aug 2014, 08:35 PM Reply Like
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