API: Proposed Oil Export Curbs Reek of N. Korean Economics
The American Petroleum Institute is setting the record straight on Congressman Ed Markey's claim (Editor's note: see here) that oil from the Keystone XL pipeline will be exported.
The project pipeline will help keep U.S. refineries supplied with domestic energy and Canadian oil supplies. Bringing additional crude oil to U.S. refineries is good for our energy security, economic security and certainly provides Americans across the country with supply flexibility.
"Any effort to restrict market forces on commodities like oil and natural gas is a North Korean style model of economics and has no place here in America," said API Chief Economist John Felmy. "Having the flexibility to export more should there be an occasional surplus of supply would go a long way to help reduce our trade deficit. We don't think that American farmers would appreciate Mr. Markey calling on them to restrict their products, and it makes no sense for an elected official to suggest this backward approach with energy."
Currently, nearly 90 percent of motor fuels refined in the U.S. is for use in the U.S. In 2010, less than 10 percent of U.S. refined motor fuels were exported and over half of the finished petroleum products exported were not in high demand in the U.S. such as non-road diesel, and residual fuel oil.
"While most of the oil from Canada would likely be used in the United States, should there be excess supplies, free-market economics should dictate how those resources are utilized, not one elected member of Congress," said Felmy. "These resources will be refined in the United States, through a pipeline that is hopefully built here, and both prospects will create a lot of American jobs, increase our energy security, and provide revenue for our government."