America, The Energy Exporter

At a minimum, motorists in an energy self-sufficient North America will benefit from stable if not lower gasoline prices.  No longer would civil strife in the Middle East significantly affect family budgets in Middle America. On the other side of the globe, establishing the U.S. as an energy exporter strengthens economic partnerships with competitors in Asia such as China and India. 

Additionally, the nation’s inland waterway system is in dire need of upgrades and routine maintenance. The network of canals and waterways that crisscross America carry approximately 22 percent of domestic petroleum products and more than half of our agricultural commodities. The system has faced years of neglect and is in need of additional federal spending to upgrade dam, lock and levy systems.

Passage of the Water Resources Reform and Development Act will provide much needed funding and reform to Harbor Maintenance Trust Fund, the Inland Waterway Trust Fund, and other waterway related programs and agencies. This will further expand our ability to freely and affordably transport and export domestically produced energy.

One indicator of the nation’s ability to transform into a net energy exporter are distillate exports such as diesel or jet fuel.  The U.S. exported a record 3.8 million barrels a day in July 2013 to places as far away as Asia. One factor driving exports is low sulfur diesel produced in the U.S. but in demand in South and Central America because of new air quality laws.  

As America moves into its new role as an energy exporter, public policy should keep pace with America’s booming energy finds. Permitting improvements to pipelines, ports, railways and highways will both strengthen the U.S. economy at home and stabilize partnerships abroad.  

Jeff Huddleston is a managing director for Conway MacKenzie where he counsels energy companies on restructuring, strategic planning and merger & acquisition.