Exports of US crude oil could gain 18 US states more than 5,000 jobs each in 2020 and yield vast economic benefits across most states, a new study submitted to the American Petroleum Institute revealed.
“The US is poised to become the world’s largest oil producer, and access to foreign customers will create economic opportunities across the country,” said Kyle Isakower, API vice-president for regulatory and economic policy, “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,” Isakower said.
The new report, conducted by ICF International and EnSys Energy, provides a state-by-state analysis of economic benefits first outlined in March in a national report, which showed that lifting export restrictions could save consumers as much as $5.8 billion/year, on average, between 2015 and 2035, as higher production and efficient markets help boost supplies and lower costs.
According to the latest report, if current restrictions on crude exports were lifted, depending on global price trends, nine US states, including Florida, Michigan, Indiana, California, New York, Pennsylvania, Ohio, Texas, and North Dakota, could see over $1 billion each in state economic gains in 2020, with slower growth through 2035 after new drilling plateaus.
Eight states, including Illinois, Florida, New York, Pennsylvania, Ohio, California, North Dakota, and Texas, could gain more than 10,000 jobs each in 2020. Texas alone could gain as much as $5.21 billion in added economic activity and 40,921 jobs in 2020. North Dakota could gain 22,215 added jobs and $4.81 billion in state economic growth in 2020.
States with significant manufacturing and consumer spending, such as California, could add 23,787 jobs and $2.06 billion in economic activity in 2020. New York could add 15,350 jobs and $1.95 billion in economic activity in 2020.
Illinois could add 10,033 jobs and $990 million in state income in 2020.
“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.”