The Small Business Subcommittee on Agriculture, Energy and Trade, under the chairmanship of Rep. Scott Tipton (R-CO), today conducted a hearing to examine the disparity between the growing rate of domestic crude oil production and a limited refining capacity, as well as how that mismatch impacts small energy businesses, energy costs, and the broader economy.
“In contrast to a decline in oil production on federal lands, oil production on private lands is growing rapidly. However, the U.S. is not able to enjoy the full economic benefits from this surge because our refining capacity can’t keep up due to bureaucratic barriers,” said Chairman Tipton. “To address our unstable energy and gas prices, we must unleash our abundant energy resources.”
“Today’s discussion on solutions to this emerging problem, whether its easing regulations on refiners or lifting the export ban on domestically produced crude oil, was substantive. The testimony also confirmed that Washington must remove expensive and time-consuming construction and operational permitting requirements and regulations so our energy industry can safely produce and refine oil in a cost-efficient manner, which will reduce foreign imports of crude oil, create hundreds of thousands of new jobs, and help drive down gas prices for overstretched consumers and small businesses.”
Materials from the hearing are available on the Committee’s website HERE.
Russell Smith, Senior Vice President of Quantum Energy in Williston, ND said, “If there is a bottom line message in my testimony today, it is that government regulations have a very real impact on our business and our business planning for the future. Perhaps most important is that uncertainty about overall federal policy toward crude oil refining and market availability has an indisputable impact on how all investors view business opportunities in this sector.”
Jared Blong, CEO/President of Octane Energy in Midland TX said, “While some may think that this [oil and natural production] growth can be attributed exclusively to the “majors” – that is, the larger, independent or integrated oil and gas companies -- let me suggest that the vast majority of the nearly 10 million Americans who work in the energy sector are small business entrepreneurs like me, dedicated to conservation, innovation, efficiency and stewardship -- and our contributions are and will continue to be, instrumental to America’s energy future.”
Kevin Book, Managing Director of ClearView Energy Partners, LLC in Washington, DC said, “My testimony today suggests that even as many Americans celebrate the renewed production of light, sweet crude oil, current production trends may be creating an unstable equilibrium. Domestic crude supply appears poised to outgrow its available outlets under current export policy, creating uncertainty for upstream and downstream investments. Producers may soon see deeper discounts relative to global prices, while refiners must consider whether to commit capital to new infrastructure predicated in large part on these feedstock discounts. In my view, moving as quickly as possible towards a clear and durable policy decision regarding crude oil exports appears to in the interest of all parties.”