Adaptation to Changing Crude Oil Markets

Floor Speech

BREAK IN TRANSCRIPT

Ms. JACKSON LEE. 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 good-paying jobs, lowering gasoline prices, promoting our geopolitical interests, and strengthening our defense capabilities.

But I strongly am ``pro-jobs,'' ``pro-growing economy,'' ``pro-sustainable 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 nation's 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 America's unconventional oil boom.

U.S. crude production is now more than 11 million barrels per day according to the U.S. DOE's 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 80-year 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 60-ship 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 2030.

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.

[End Insert]

BREAK IN TRANSCRIPT

Ms. JACKSON LEE. Mr. Chairman, let me thank Mr. Pallone and Mr. Barton for their courtesies and as well the Rules Committee. Let me first of all say there has been a lot of discussion on the floor of the House regarding this bill and different opinions. Might I add that this is an important and vigorous discussion. I think this is the best of what this Congress is all about.

Mr. Chairman, I would like to take note of H.R. 702, which many of us know came about because of the gas prices in the 1970s. This bill simply repeals that portion of the legislation that responded to that crisis.

What I like in the bill is, of course, we have in the bill that we, as a Congress, will get a report some 120 days after dealing with the maintenance and the strength of the Strategic Petroleum Reserve. That is a very important national security item.

A savings clause indicates, of course, that the President has all of his powers in the light of crisis and other issues to implement any necessary changes or any necessary restrictions on this legislation.

My amendment tracks giving more information. 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 import ban under this act as relates to promoting, supporting, and providing for the United States energy and national security policy.

Our number one responsibility is the American people--I understand that--both environmentally, which reflects to their own energy resources, and certainly with national security. This amendment allows for that report to be on the front side of 10 years. It could be 2 years from now, 3 years from now, and the Congress can dictate that.

U.S. crude production bottomed in 2008 at about 7 million barrels a day. It is now more than 11 million barrels a day, and it is now possible to go up to 18 million barrels a day in 2040 under the strictest environmental concerns.

But right now in my district--right now in my district--they are laying off thousands of people because there is no work. So I would argue to my colleagues that this amendment provides the insight on what is going on.

This bill could provide the GDP would rise by 550 billion to 1.8 trillion between 2015 and 2039. It is estimated in my own congressional job lifting the ban would generate an additional 500 hundred jobs, an additional 270 million in the local economy, and increase government revenues in 227 million.

This 10-year period under that--by the way, it is up to 10 years--is giving long enough time to provide a probative, intelligent assessment of whether there is irreversible damage.

Amendment No. 9 operates as a safety valve and reassures that those who may be skeptical of lifting the export ban get reasonable opportunities to oppose it or get the right information. The same thing with those who may support it. It gives us a basis of empirical data rigorously analyzed.

Mr. Chairman, my amendment can be summed up as follows: For those who are confident in the future, my amendment offers vindication. For those who are skeptical of the new change, my amendment will provide the evidence they need to prove their case.

I ask my colleagues to support the Jackson Lee amendment.

Mr. Chairman, I reserve the balance of my time.

BREAK IN TRANSCRIPT

Ms. JACKSON LEE. 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.

[Begin Insert]
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:

[End Insert]
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.

[Begin Insert]
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 nation's 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 ``pro-jobs,'' ``pro-growing economy,'' ``pro-sustainable 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; America's 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. DOE's Energy Information Administration, U.S. output is estimated to top 18 million barrels a day by 2040.

Crude inventories are at an 80-year 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 ban's 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.

[End Insert]

BREAK IN TRANSCRIPT

Ms. JACKSON LEE. Mr. Chairman, I ask that my amendment be considered by my colleagues.

Mr. Chairman, my amendment requires within 180 days of enactment the Secretaries of Energy and Commerce submit a report to Congress analyzing how lifting the ban on crude oil, in particular, on exports, will create opportunities for veterans and women.

Mr. Chairman, just a few days ago I went to an initiative called Stand Down. I have gone a number of years. Most military persons will understand it is where you come and stand down from battle.

In this instance, they were veterans, many of them homeless, many of them in great need. Obviously, social services, substance abuse services, and others were offered there. What I heard from these men who wore the uniform in dignity is they want jobs.

Mr. Chairman, I believe that this legislation will provide a strong pro-jobs agenda growing the economy. As my previous amendment said, I do not take lightly the impact of lifting the ban; therefore, my previous amendment would provide the insight on whether or not this is a positive impact.

I can tell you that there is a great need, as has been discussed earlier, about collaborating with historically Black colleges and Hispanic-serving colleges.

I have worked on those issues and have certainly seen the leadership of Mr. Rush and Mr. Cuellar. But I will tell you that it is indicated that State shale development supports American jobs.

Mr. Chairman, $107,000 is the average salary that is provided by the energy company in energy jobs, 1.7 million employment attributed to upstream, unconventional oil and natural gas. Women fill 40 percent of the vacancies in oil and gas.

BREAK IN TRANSCRIPT

Ms. JACKSON LEE. The government and the administration are working to pair up and find jobs for veterans. The unemployment rate for veterans we have seen has been a constant issue, and it is going down. But we need to provide them with other opportunities. They were higher unemployment, as we can see, than the regular workforce.

So my amendment wants to ensure that, if we lift this ban, women and veterans will benefit. We know, of course, that we have been pushing our educational facilities to engage in STEM, but what we need now is a pipeline for qualified veterans and women looking for jobs right now.

Mr. Chairman, I would ask my colleagues to support this Jackson Lee amendment. It causes us to focus on these vulnerable populations--women and veterans--to direct them into the industry.

Might I say to my constituents, the energy companies that I represent, a long list of names that I will not name at this time, that we hope that they are focused as well on expanding opportunities in the energy industry for veterans, returning soldiers, if you will, women, and, of course, across-the-board minorities. This is an industry that is moving and growing, and the opportunities should move and grow as well.

With that, Mr. Chairman, I ask my colleagues to support the Jackson Lee amendment.

Mr. Chairman, I reserve the balance of my time.

BREAK IN TRANSCRIPT

Ms. JACKSON LEE. Mr. Chairman, I thank the gentleman. I yield myself such time as I may consume.

Mr. Chairman, I thank Mr. Pallone. I hope that our colleagues have heard us to emphasize the creation of jobs along with the environment, national security, and the energy resources of America.

[Begin Insert]
Mr. Chair, again, 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.

Mr. Chair, thank you for the opportunity to explain my amendment, which provides:

Sec. 7. Report. Not later than 180 days after the date of enactment of this Act, the Secretary of Energy and the Secretary of Commerce shall jointly transmit to Congress a report analyzing how lifting the ban on crude oil exports will help create opportunities for veterans and women in the United States, while promoting energy and national 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 10.

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 nation's economy strong.

I strongly am ``pro-jobs,'' ``pro-growing economy,'' and ``pro-expanding economic opportunities for women, veterans, minorities, and small business!''

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, promote the national interest, and expand economic opportunities for everyone, particularly for women, veterans, and members of underrepresented communities.

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.

That is why I have offered Jackson Lee Amendment Number 10, which recognizes the fact that veterans, minorities, small businesses and women currently are significantly underrepresented in the oil and gas industries at all levels and severely underrepresented in the senior managerial, professional, board and ownership ranks.

Jackson Lee Amendment Number 10 directs the Secretaries of Commerce and Energy to submit a report to Congress within 180 days assessing the beneficial impact, if any, that lifting the crude oil export ban holds for veterans and women.

This report should shed light on any additional measures that should be taken to increase the participation of women and veterans in the petroleum industry as workers, executives, and entrepreneurs.

Nationally, there were 1.2 million people employed in the oil and gas industry in 2010, only 17% of which are women.

Our booming energy sector has been one of the great American success stories over the last decade, and remains a bright spot in our economy as it continues to fuel job creation.

To continue this success and to ensure that opportunities and benefits are shared equitably, it is critical that we have a diverse energy workforce equipped with the skills, knowledge, and experiences needed to compete and win in the global economy.

And there is no better place to look than from our pool of talented veterans and women?

Women make up half our population and are increasing their presence in the STEM fields vital to success in the petroleum energy sector.

Veterans not only have proved their mettle and leadership skills in defense of our country but also are among the most resourceful and resilient members of our society, possessing the mission-critical ethic necessary for success in the workplace.

A pipeline of qualified veterans and women looking for employment could play a key role as the energy industry seeks qualified, motivated, and skilled workers and entrepreneurs.

As a nation, we must remain committed to utilizing the talents of women and veterans if our nation is to meet the challenges and take advantage of the opportunities offered by a dynamic global energy market.

Jackson Lee Amendment Number 10 helps us meet this challenge by providing critical information regarding the impact of lifting the crude oil export ban will have on creating opportunities for veterans and women.

I urge all members to support Jackson Lee Amendment Number 10.

[End Insert]
Mr. Chairman, with that, I ask for support of the Jackson Lee amendment.

I yield back the balance of my time.

BREAK IN TRANSCRIPT

Source