[Congressional Record Volume 164, Number 85 (Wednesday, May 23, 2018)]
[Extensions of Remarks]
[Page E719]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            GEOPOLITICS OF U.S. OIL AND GAS COMPETITIVENESS

                                 ______
                                 

                              HON. TED POE

                                of texas

                    in the house of representatives

                        Wednesday, May 23, 2018

  Mr. POE of Texas. Mr. Speaker, America's oil and gas industry is a 
force multiplier for U.S. influence around the world. For decades, many 
of the planet's great energy producers have been tyrannical regimes who 
leveraged their oil wealth to oppress their own people and pursue evil 
foreign policies. However, thanks to American ingenuity, the United 
States has unleashed its own energy potential--now becoming a major 
player in the global market.
  In large part, America's revival as an energy superpower is a result 
of the shale revolution. Through the process of hydraulic fracturing, 
or ``fracking,'' we are now able to reach oil and gas deep within the 
earth, where they were previously unreachable. With this new technology 
the U.S. has gone from the world's largest oil importer, to one of the 
world's largest energy exporters. Just a decade ago, the U.S. was 
importing 12.5 million barrels per day of crude oil and fuel. Today, 
it's just 4 million barrels per day. Between 2010 and 2017, U.S. oil 
production rose from 5.5 million barrels per day to 10 million barrels 
per day-approaching a record last set in 1970. This has allowed for a 
dramatic reduction of our dependence on foreign oil which ultimately 
strengthens our national security.
  In the nearly three years since Congress ended the restrictions on 
exporting crude oil, the U.S. has beat market expectations and surged 
its exports to a record 2.6 million barrels per day. By 2022 we will 
export more oil then we import. But the good news isn't limited to just 
our oil production. U.S. natural gas production has been setting new 
records almost every year since the year 2000.
  Again, thanks to innovations in liquified natural gas--commonly known 
as LNG--we can ship this growing resource anywhere in the world. In the 
last year, we have become a net exporter of natural gas for the first 
time in 60 years. In the coming years it will only improve as the 
market of natural gas consumers grows and more exporting facilities 
come online.
  America's comeback as an energy superpower has wide-ranging 
geopolitical implications. First, it is an obvious benefit for 
Americans and the U.S. economy, reducing our trade balance and creating 
new well-paying jobs. In turn, this generates more revenue making us an 
even stronger nation. Second, it means a lot less money is going to 
repressive regimes around the world who we were previously dependent on 
for oil. And since energy is more abundant, the price of oil is 
decreasing. Overall the result is less money for Putin's Russia, the 
Ayatollah's Iran, and Madura's Venezuela. With the low price of oil, 
international sanctions, and their own economic mismanagement, these 
regimes who could rely on their oil wealth to fund their evil 
activities are instead seeing their economies tank. Now their people 
are in the streets demanding accountability.
  Saudi Arabia and the Gulf states have long been important U.S. 
strategic partners because we needed their oil and their leverage in 
stabilizing global oil prices. But now we can redefine our 
relationship, making it less about maintaining oil access and more 
about other strategic US interests. With growing energy independence, 
we can pick our allies rather than have them picked for us by the 
necessity of access to oil. This does not mean we should become 
isolationists or abandon our traditional partners. Instead we should do 
the opposite. With our oil and gas advantage we are more empowered to 
argue that our allies must be more responsible, including improving 
their human rights records.
  Our increased oil and gas competitiveness allows our friends abroad 
to be more secure and less dependent on bad actors. For far too long, 
our European allies have been vulnerable to energy blackmail from 
Russia--particularly through the supply of Russian natural gas. But 
with American LNG alternatives, European states can stand up to Putin's 
bad behavior without suffering retaliation through their gas supply.
  Lastly, U.S. oil and gas exports reinforces the importance of free 
trade. This includes NAFTA. About 60 percent of U.S. gas exports now go 
to Mexico, providing a major boost to our trade balance. Canada has 
become a major importer of American refined fuels. Together, the U.S., 
Mexico, and Canada represent 20 percent of global oil and gas supply. 
Our integrated energy network makes North America a rock of stability 
and prosperity in the world.
  Overall, the increased competitiveness of U.S. oil and gas production 
is good for America and good for the world.
  And that's just the way it is.

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