Full Title: U.S. Crude Oil Pricing Analysis
Author(s): Alan Stevens
Publisher(s): Stancil & Co
Publication Date: July 1, 2015
Full Text: Download Resource
Description (excerpt):
After the oil crisis of 1973, the United States (U.S.) government in 1975 prohibited crude oil exports from the U.S., with only a few exceptions. Today, with the rapid increase in domestic crude production, historical pricing relationships have changed. Stancil & Co. (Stancil) has been retained by Monroe Energy, LLC (Monroe) and Consumers and Refiners United for Domestic Energy (The CRUDE Coalition) to study potential effects of lifting the crude oil export ban.
In exploring this question, Stancil has examined whether and to what extent crude oil export restrictions historically have had an effect upon U.S. crude oil production, pricing, and imports, and whether and to what extent other factors have affected pricing relationships. We have analyzed extensive historical data from the Department of Energy (DOE), the Energy Information Administration (EIA), along with published petroleum pricing information. Our primary findings are as follows:
• Allowing the export of crude would cause domestic gasoline, jet fuel, diesel, and heating oil prices to increase
• Lower fuel prices in recent months have created material benefits for American consumers
• Domestic refining capacity and utilization is at an all-time high
• Allowing exports of domestic crude would have a negative impact on the U.S. trade balance
• The Organization of Petroleum Exporting Countries (OPEC) cartel continues to control crude oil prices indirectly through its regulation of production volumes