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Keeping U.S. Crude in America: Critical to American Consumers, Businesses, and National Security.

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Presentation on theme: "Keeping U.S. Crude in America: Critical to American Consumers, Businesses, and National Security."— Presentation transcript:

1 Keeping U.S. Crude in America: Critical to American Consumers, Businesses, and National Security

2 Lower Fuel Prices: A Boon to Americans The Average Household Will Save $700 in 2015 Allstate/National Journal Poll: 79 percent say cost of living is “fair” or “poor” 32 percent say lower gasoline makes a “huge” or “significant” impact 47 percent say “modest” or “slight”

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4 Source: JPMorgan via AEI

5 Crude: The Feedstock of the U.S. Economy

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7 Cheap Crude Boosting the US Economy A report from the National Association for Business Economics shows that cheap crude is: Increasing consumer confidence and economic growth across the board. Lowering unemployment and inflation. Healthier consumer spending, bolstered by lower oil prices, is expected to “make outsized contributions to the projected acceleration in overall economic activity.” Economic growth into 2016 is attributable in large part to “the psychological impact of lower gasoline prices”

8 Small Businesses and Jobs Benefit Small businesses create 2 out of every 3 jobs in America. According to the NFIB, energy costs are one of the top three business expenses in 35% of small businesses. The primary energy cost: For 38% of small firms is operating vehicles; For one-third of small firms is heating and/or cooling; For one-fifth of small firms is operating equipment. “It is critical for America’s small businesses to have access to affordable and reliable supplies of energy to remain competitive.” - NFIB

9 Americans Oppose Exporting Crude Hart Research Poll of 1106 likely 2016 voters Large majorities across party lines oppose increasing the amount of oil exported abroad – 69 percent 46 percent strongly oppose GOP: 61 percent Independents: 69 percent Democrats: 75 percent

10 Americans Oppose Exporting Crude University of New Hampshire 2/3 said US is importing too much oil from abroad 81 percent say reduce imports before allowing exports Less likely to vote for a politician who votes for crude oil exports under three different circumstances: (1) before the US becomes energy independent, (2) before the impact on US gas prices is known for certain or (3) if US gas prices increase as a result. New Hampshire concerns center around pump prices

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16 Exporting Crude Will Raise Fuel Prices A significant proportion of the input to gasoline is crude – crude drives the price Producers want to lift export restrictions because they want more money for their product, not less There is no refining “wall” Crude storage is market-driven, not export policy-driven Domestic crudes sell at a discount in large part because of logistical constraints and costs Exporting US crude will harm US refining, with implications for gas prices, the economy, and national security

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23 Keep U.S. Crude in America Americans Are Benefiting From Lower Fuel Prices Americans Oppose Exporting U.S. Crude Fuel Prices Will Rise With Exports We Are Not Energy Independent Exporting Crude Will Not Diminish OPEC’s Clout


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