Date: 2015-10-09
Speaker: JACKSON LEE (democrat)
Chamber: H

Mr. Chairman. let me just simply say my amendment answers many of the concerns that have been expressed on the floor of the House by giving empirical data. not 10 years and beyond. but in a period up to 10 years. to let us make further informative decisions to provide for the energy resources of the American people. the national resources. and. of course. being able to provide for the national security. With that. I ask for support of the Jackson Lee amendment. Mr. Chair. let me express my appreciation to Chairman Emeritus BARTON and Ranking Member PALLONE for their leadership and commitment to American energy independence and economic growth and security. I also wish to thank Chairman SESSIONS. Ranking Member SLAUGHTER. and the members of the Rules Committee for making in order Jackson Lee Amendment Number 9. Mr. Chair. thank you for the opportunity to explain my amendment. which provides: Sec. 7. Report. Not later than 10 years after the date of enactment of this Act. the Secretary of Energy and the Secretary of Commerce shall jointly transmit to Congress a report that reviews the impact of lifting the oil export ban under this Act as it relates to promoting United States energy and national security. As the Member of Congress from Houston. the energy capital of the nation. I have always been mindful of the importance and have strongly advocated for national energy policies that will make our nation more energy independent. preserve and create jobs. and keep our nations economy strong. The Eighteenth Congressional District. which I am proud to represent is home to Shell Oil. ConocoPhillips. Chevron Phillips. BP Corporation of North America. Marathon Oil. Enterprise Products Partners (Oil and Gas Pipelines). and Halliburton (Oilfield Services). and many others. I am strongly "projobs." "progrowing economy." "prosustainable environment and development." and for homeland and national security. Volatile energy prices threaten economic security for millions of middle class Americans and hits consumers hard. rising gas prices strain budgets for millions of American families. It is a familiar story. but in order to restore lasting security for middle class families we need a smart and reasonable plan for American energy. not false promises or quick fixes. That is why I carefully consider each energy legislative proposal brought to the floor on its individual merits and support them when they are sound. balanced. fair. and promote the national interest. So my constituents have a strong interest in policies that maintain or enhance the competitiveness of American petroleum energy business in the world oil markets. Where they fall short. I believe in working across the aisle to improve them by offering constructive amendments. H.R. 702 repeals the law prohibiting the exports of crude oil that has been on the books for more than 40 years. a response to the Arab Oil Embargo led by OPEC in 1973 that sent oil prices soaring and inflicted substantial damage on the American economy. But much has changed since 1973. Americas unconventional oil boom changed everything. U.S. crude production bottomed in 2008 at about 7 million barrels per day. now it is now more than 11 million barrels per day and according to the U.S. DOEs Energy Information Administration. U.S. output is estimated to top 18 million barrels a day by 2040. Crude inventories are at an 80year high. and imports have declined nearly 30% between 2005 and 2013. Mr. Chair. paradoxically. continuation of the crude oil export ban may pose one of the biggest threats to this U.S. production boom and to the economy. This is because increased production has led to a substantial decline in oil prices over the past year and the resulting decrease in revenues has forced U.S. producers in my district and elsewhere to slash investment and cancel projects. Since last autumn the industry has cut more than 125.000 jobs. including many in my district. I have met and know many of the employers and workers affected by industry job reductions. Mr. Chair. lifting the crude oil export ban would offer American crude oil producers new markets for their product and would mean fewer layoffs. Studies by the highly respected Brookings Institution and other organizations suggest that the economic benefits to the nation of repealing the ban on crude oil exports would be substantial: 1. GDP could rise by $550 billion to $1.8 trillion between 2015 and 2039. 2. U.S. oil production could rise by 1.3 million to 2.9 million barrels per day in 2020. 3. 300.000 additional jobs created by 2020. 4. $5.8 billion in estimated reduced consumer fuel costs each year between 2015 and 2035. 5. up to $70 billion in additional investment in U.S. exploration. development. and production of crude oil between 2015 and 2020. 6. $13.5 billion in additional federal. state. and local revenue in 2020. 7. $22 billion reduction in the U.S. trade deficit in 2020. and 8. 100.000 barrels per day increase in refinery throughout between 2015 and 2035. It is estimated that in my own congressional district. lifting the ban would generate an additional 500 jobs and inject an additional $275 million into the local economy. resulting in an increase in government revenues in the amount of $227.7 million. Admittedly. these are predictions. projections. and forecasts made on the basis of the best information currently available. We hope they are accurate but candor requires that we acknowledge that no one can say with certainty they will come to pass. That is why it is essential that at an appropriate juncture we review and assess the impact on the American petroleum industry. the national economy. and consumers. And that is the purpose of Jackson Lee Amendment #9. which mandates a comprehensive review of the impact of crude oil export ban repeal after a 10 year period. This 10 year time period is long enough to accumulate data sufficient and probative enough to assess the impact of H.R. 702. but not so long as to prevent irreversible damage if the evaluation does not approximate the expected benefits reveals unintended adverse consequences. In sum. Jackson Lee Amendment Number 9 will help ensure that the brave new world of unrestricted crude oil exports by American producers is more than a leap of faith. Rather. Jackson Lee Amendment Number 9 operates as a safety valve and reassures those who may be skeptical of lifting the export ban that reasonable opportunities will exist to make an informed evaluation of the effect of the bans repeal on our economy and national security. And it is important to emphasize Mr. Chair. that this evaluation will be based on empirical data rigorously analyzed. In short. Mr. Chair. my amendment can be summed up as follows: for those who are confident of the future. my amendment offers vindication. For those who are skeptical that the new change will work. my amendment will provide the evidence they need to prove their case. And for those who believe that maintaining the status quo is intolerable. my amendment offers a way forward. I urge all members to support Jackson Lee Amendment Number 9. Mr. Chairman. I yield back the balance of my time. The Acting CHAIR. The question is on the amendment offered by the gentlewoman from Texas .