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OIL AND GAS
U.S. oil trade survey draws mixed reviews
by Daniel J. Graeber
Washington (UPI) Feb 11, 2015


disclaimer: image is for illustration purposes only

A public opinion survey on foreign trade in U.S. crude oil, conducted for a pro-export group, was criticized as shoddy by those backed by a refinery coalition.

FTI Consulting was hired by the Producers for American Crude Oil Exports to gauge public opinion on trade policies governing the U.S. energy sector. It found 69 percent of those likely voters supported policies that would allow "producers to sell crude oil to customers in countries who are trading partners" with the United States.

PACE Executive Director George Baker said in statement the survey reaffirms studies by policy centers and government agencies on loosening trade policies on crude oil produced in the United States.

"Each [study] has determined that crude oil exports will grow the economy and provide broad-based consumer benefits," he said.

Arab members of the Organization of Petroleum Exporting Countries stopped exporting oil to the United States in response to U.S. support for Israel in the 1970s. In response, the U.S. Congress passed legislation restricting crude oil exports.

Supporters of repealing the ban, like PACE, argue it would increase U.S. leverage overseas, while at the same time creating a source of domestic economic stimulus through jobs and lower energy prices.

More than 75 percent of the 1,025 registered voters who took part in a survey conducted Feb. 2-5 told pollsters they believed the overall impact of more trade in crude oil would be positive. Around 60 percent said they expected fuel prices would drop with more U.S. crude oil on the foreign market.

The Consumers & Refiners United for Domestic Energy coalition took issue with FTI Consulting survey, noting the word "export" does not show up in any of the questions.

"The PACE poll uses questionable methodologies and leading questions to arrive at a desired result," CRUDE Executive Director Jay Hauck said in a statement e-mailed to UPI. "The poll is an outlier that shouldn't be taken seriously."

Those in the refining sector argue oil prices will increase, refiners will reduce gasoline production in response and domestic prices for gasoline will increase if the crude oil export ban is repealed

The federal government has allowed some exports of a petroleum product called condensate, an ultra-light form of oil found in U.S. shale deposits. Gains in oil from shale are behind the precipitous rise on total U.S. crude oil production.

The survey conducted for PACE had a margin of error of plus or minus 3.06 percent.


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