The Domestic Energy Producers Alliance is a nationwide collaboration of 25 coalition associations – from California to West Virginia, Texas to Montana – representing about 10,000 individuals and companies engaged in domestic onshore oil and natural gas exploration and production (E&P). We believe in seeking common ground, and in common sense solutions to the challenges that face us in our businesses, including our relationship with the federal legislative and executive branches of government. In only its fifth year, DEPA now represents a majority of the individuals and companies responsible for the current renaissance in American oil and natural gas production.
The United States continues to be a global leader in oil and natural gas production. However, foreign-owned refining capacity may limit future U.S. oil production growth.
Foreign entities have acquired significant U.S. refinery assets since the 1980s, and currently, about 30 percent of the country’s refining capacity is foreign owned. Many of these foreign-owned refineries have financial agreements that allow them to exclude domestically sourced crude oil. These foreign-owned entities can use these U.S. refinery assetsin a new strategy to capture market for their oil production and limit marketsfor U.S. production. Many experts believe the United States may double oil production by 2025, making our nation energy independent–but not if our oil has nowhere to go.
Debate continues across the country on our nation’s energy future. The competing visions, however, are not just philosophical arguments. There are real differences between these two visions and their outcomes on our economy, on consumers, and on our way of life.
On one hand, we have today’s energy reality in which the U.S. leads the world in production of oil and natural gas and consumers enjoy almost unprecedented energy security. Drivers saved more than $550 at the pump in 2015, while lower costs for energy related products and services boosted household budgets by $1,337. The overwhelming majority of Americans support policies to maintain U.S. energy leadership. This pro-energy vision means energy from all sources, including oil and natural gas, generate economic growth and reduce carbon emissions.
It is no secret that the Texas economy is closely tied to the oil and gas industry.
And, it is no secret that the economic health of the oil and gas industry is tied to the price of crude oil.
Crude oil is entering another period of uncertainty as producers in the U.S. continue to increase exploration while OPEC nations and Russia try to maintain their pledge to reduce their oil production by 1.8 million barrels per day.
Crude oil prices on the New York Mercantile Exchange (NYMEX) closed below $50 per barrel on April 24 for the first time since May 29.
Traders worldwide are trying to sort it all out, but a key factor is OPEC’s decision to continue its six-month agreement to reduce its oil production, which expires June 30.