Free Trade. Crude Oil exports. Dr. Margo Thorning, Vice President & Chief Economist at the American Council of Capital Formation (ACCF.org)
Dr. Thorning has testified as an expert on capital formation, tax, energy and environmental policies before multiple US congressional committees….
Dr. Margo Thorning comments on the US Government/Administration (double) standards on global trade rules ….[As Mr.Timmons, President & CEO of the National Association of Manufacturers wrote in the Seattle Times,] the US, as a founding member of the World Trade Organization (with 161 members), ” helped establish the global trade rules which prohibit countries from placing quantitative limits on exports…” The US, recently, “challenged China’s export restraints on rare earth and raw materials…, but it still has not lifted the 40 year old restrictions on crude oil exports (since after the Arab Oil Embargo of 1973)….”[flying] in the face of economic [sense]…,illogical and wrong…especially, when there is an abundance of crude oil production, due to hydraulic fracturing- with 9 million barrels produced per day…”
Dr. Thorning speaks of the bipartisan legislation introduced on May 19th in the Senate ( Senators Joe Manchin (D-WV) and Bob Corker (R-TN) joined sponsor Senators Heidi Heitkamp (D-ND) and Lisa Murkowski (R-AK) in introducing the American Crude Oil Export Equality Act, “to help lift the outdated, 40-year ban on exporting American crude oil ) In the House, Dr. Margo explains, a companion bill was introduced by Rep. Mike Conway, (R-TX)
Dr.Thorning speaks of the congressional briefing and panel discussion (May 20th) she moderated with trade policy experts and where Senator John Hoeven (R-ND) was the keynote speaker . Dr. Thorning also speaks of the need for the MEDIA to help educate the public on the importance of lifting the ban…and notes that “there is so much oil (45% increase) that there are not enough storage facilities, with oil stored in ships offshore…” What has changed since 1975? Technology advances, productivity booms, fracturing…
Free Trade. Oil & Gas. Dr. Margo Thorning
National Security-World Security: Dr. Thorning explains Europe’s dependency (for example) on Russia’s crude oil (25%) and natural gas (30%) and the predicaments it faces….with an ever provocative Russia… American exports of crude oil and LNG (Liquefied Natural Gas) would also create an opportunity for “non military influence around the globe…strengthening US geopolitical security and promoting a cleaner environment..”.-(Brookings Study)
Dr. Thorning also comments on the competitors, OPEC, Canada and Iran and what can happen in the oil market if the Iran sanctions are lifted..Dr. Thorning speaks of the “painful process that companies have to go through to get clearance (license) to build a LNG facility…” pointing to an “obsolete policy to constrain US energy to the US…” Dr. Thorning explains the technological advances and higher standards promoted by the US producers and mentions her testimony at a the Science, Space & Technology Committee hearing in April, on “global greenhouse emissions” and insists on “the need to speed up the sale of LNG from the US to China and Japan, countries that remain dependent on coal. Natural gas emits half the CO2 of Coal…” Dr. Thorning concludes the interview by speaking of the collaboration between the President and the Republican Party…,on “the trade bills for Asia and Europe…, an opportunity for growing exports from the US…”
Free Trade. Oil Producer Canada. Norman S. Leach
Norman S. Leach is President and CEO of Norman S. Leach and Associates, a worldwide management consulting firm. Mr. Leach speaks of the (depressed) oil industry in Canada and the reasons for the construction of the Keystone Pipeline…” to allow the (safe )transportation of oil destined for…China, from land-locked Alberta… and creating along the way at least 20,000 high paying jobs…” Mr. Leach speaks of the strained US-Canada relations..
New Government. Calgary, Alberta. Norman S. Leach
Norman S.Leach concludes the interview by speaking of living in these “uncertain times…” causing nightmares for any businessman… Mr. Leach speaks of the potential challenges faced by the oil industrialists in Alberta, with the election of a former teacher (with no oil & gas business experience) as Minister of Energy for the province. Mr. Leach speaks of the opportunities for American firms to go “international…,” and notes that “less than 1% of American companies are involved in trade overseas…” “Our view…get out of (anemic) North America and trade in Latin America, Asia markets…” Do we want a world without borders? Mr. Leach admits that “maybe a couple of years ago…but with terrorism, we need boundaries.” It is also important that countries maintain their idiosyncracies…and culture!!