A new state-by-state analysis shows that 18 U.S. states could gain over 5,000 jobs each in 2020 from exports of U.S. crude oil, said API Vice President for Regulatory and Economic Policy Kyle Isakower. The study also forecasts that most states could see economic activity grow by hundreds of millions of dollars due to growing energy production and downward pressure on the prices at the pump.
“The U.S. is poised to become the world’s largest oil producer, and access to foreign customers will create economic opportunities across the country,” said Isakower. “When it comes to crude oil, the rewards of free trade are not limited to energy-producing states. New jobs, higher investment, and greater energy security from exports could benefit workers and consumers from Illinois to New York, especially in areas where consumer spending and manufacturing drive growth.”
The new report was conducted by ICF International and EnSys Energy. It provides a state-by-state analysis of economic benefits first outlined this March in a national report, which showed that lifting export restrictions could save consumers up to $5.8 billion per year, on average, between 2015 and 2035, as higher production and efficient markets help boost supplies and lower costs. The latest report shows that if current restrictions on crude exports were lifted:
Depending on global price trends, nine states – Florida, Michigan, Indiana, California, New York, Pennsylvania, Ohio, Texas, and North Dakota -- could see over $1B each in state economic gains in 2020, with slower growth through 2035 after new drilling plateaus.
“Restrictions on exports only limit our potential as a global energy superpower,” said Isakower. “Additional exports could prompt higher production, generate savings for consumers, and bring more jobs to America. The economic benefits are well-established, and policymakers are right to reexamine 1970s-era trade restrictions that no longer make sense.”
API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 600 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 20 million Americans.