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

Mr. Speaker. I rise to discuss H.R. 702. a bill to "Adapt to Changing Crude Oil Market Conditions." 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. Let me express my appreciation to Chairman Emeritus BARTON and Ranking Member PALLONE for their leadership and commitment to American energy independence. economic growth. national security. and expanding opportunities and diversifying the energy sector workforce. I support H.R. 702 because it holds the promise of moving our country towards energy independence. create goodpaying jobs. lowering gasoline prices. promoting our geopolitical interests. and strengthening our defense capabilities. But I strongly am "projobs." "progrowing economy." "prosustainable environment and development." and for homeland and national security. 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. 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 represent and 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. My constituents have a strong interest in policies that maintain or enhance the competitiveness of American petroleum energy business in the world oil markets. Mr. Chair. the world is very different than it was in 1973 when the ban on crude oil exports was adopted. And much of the change we see today is attributable to Americas unconventional oil boom. U.S. crude production is now more than 11 million barrels per day according to the U.S. DOEs Energy Information Administration. up from 7 million barrel per day in 2008. And it is estimated that U.S. output will exceed 18 million barrels a day by 2040. Crude inventories are at an 80year high. and imports have declined nearly 30 percent 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. 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. Specifically. it is predicted that repeal of the crude oil export ban will: 1. generate over $1.4 billion in revenue to the federal treasury over the next 10 years from oil and gas leases. according to the Congressional Budget Office. 2. lower gasoline prices by 13 cents per gallon according to the Government Accountability Office. 3. support up to 964.000 additional American jobs. 4. allow the United States to help its allies. enhance its energy security. and weaken the influence and market power of OPEC and Russia. and 5. strengthen the 60ship Maritime Security Fleet. assuring that United States flag ships and crews will be available to provide support to the military in defense of our national interests and our allies. The economic benefits projected to be derived from a repeal of the crude oil export ban are stunning in their magnitude: 1. 300.000 additional jobs by 2020. 2. $5.8 billion savings in fuel costs each year between 2015 and 2035. 3. $70 billion in additional investment in U.S. exploration. development. and production of crude oil between 2015 and 2020. 4. 500.000 barrels per day increase in domestic crude oil production in 2020. 5. $38 billion in additional economic activity in 2020. 6. $13.5 billion in additional federal. state. and local revenue in 2020. and a 7. $22 billion reduction in the U.S. trade deficit in 2020. 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. Another positive impact of repealing the crude oil export ban is that the U.S. crude oil production would increase 1.2 million barrels per day average between 2016 and 2030. Additionally. manufacturing jobs are expected to increase by an average of 37.000 per year through 2025 and analysts predict that construction jobs will increase 217.000 in the peak year 2017. while related professional services jobs would grow by an average of 148.000 per year. Repeal of the crude oil export ban is expected to spur capital investment in machinery. exploration. and development by $7 billion in 2020. The gross domestic product would increase by nearly $73 billion in 2016 and by at least $134 billion in 2018. Total government revenues would increase by a combined $1.3 trillion between 2016 and The revenue generated translates to an expected average annual increase of $2.500 in disposable income per household. additional jobs for American workers. and lower gasoline prices for American consumers. As it relates to our geopolitical stance. Mr. Chair. lifting the crude export ban will enhance our national influence in international affairs because we will be stronger economically and more energy independent. This will enhance our ability to achieve our geopolitical objectives of maintaining peace and security across the globe which in turn furthers our national security interests. For all of these reasons. I support H.R. 702 and urge my colleagues to join me and also support Jackson Lee Amendments 9 and 10.