Association of oil pipelines. Thank you all. Lets give them a round of applause. [ applause ] before i turn to my prepared remarks, id also like to acknowledge a couple dozen veterans that we have in our room today. Those that lead our efforts of what we call vets for energy group. Id like them all to stand. I think theyre all over in this area. Would you please stand for us . We greatly appreciate [ applause ] all you have to do is read the newspaper headlines today and see whats going on around the world. Its a very sobering thought, particularly as we give thanks to these veterans and others. What they have been doing is working hard on the issues of National Security associated with energy security. We want to give a special shoutout to you for your service and the other vets that happen to be in the room with us today. At your seat, you have a copy of this years report, which captures americas Current Energy reality and potential through the lens of seven u. S. Regions the east, southeast, gulf coast, mountain, west, and central. This year the report emphasizes the National Scope of the oil and Natural Gas Industry and identifies the common challenges which we face. And the important leadership role played by the states in the transition of our nation away from the decades of Energy Scarcity and uncertainty towards an era of Energy Abundance and security. The report is a snapshot of Energy Policy as it is today and as it could and should be in the future. In broad terms the state of American Energy is strong, even during this time of what we call realignment. The United States is more energy selfsufficient and has transitioned from an era of scarcity and dependence into a Global Energy leader. Today the Global Energy world is realigning with the United States poised to remain a dominant global player, something that was unforeseen just a decade ago. The Energy Policy decisions we make today will determine whether this nation remains a positive stabilizing force in the Worlds Energy market and whether consumers can continue to count on reliable, affordable, and abundant domestically produced energy for years to come. Domestically, the energy renaissance, which has created an unprecedented surplus of energy, has significantly lowered energy costs for American Consumers and delivered a sizable lift to our u. S. Economy. For example, the Energy Information administration estimates that the American Consumers have now saved on average 700 in 2015 on Transportation Fuel costs alone. As a result of this abundant energy. The average u. S. Income was 1200 higher in 2012 given Lower Home Energy costs brought about by unconventional development. The figure could reach as much as 3500 a year per family by 2025. Even during this period of realignment, the oil and gas industry remains an important source of wellpaying jobs for millions of americans. Americas oil and Natural Gas Industry supports approximately 1. 2 trillion in u. S. Gross domestic product. Thats the equivalent of the size of the mexican economy, according to the world bank. Fortunately, we know how to bring about americas Brighter Energy future, which means lower costs for American Consumers, a cleaner environment, and American Energy leadership because that is todays reality here in the United States. We call it the u. S. Model. Simultaneously the United States is leading the world in Energy Production. We have one of the strongest western economies, and we are leading the world in reducing Greenhouse Gas emissions. A trifecta of success unmatched by any other nation in the world. Our nations success is a Global Energy product and carbon reduction leader is rooted in the United States federal system which allows the states to be an active actor when it comes to how its Energy Resources are developed. Our system of government working in combination with our long tradition of entrepreneurship and distinctive innovative spirit has led to worldleading reductions in Carbon Emissions now at near 20year lows. As the state of American Energy report details, the states demonstrate time and again that the best way forward on Energy Policy is not through legislative mandate, overreaching regulatory oversight, or executive decree, but by using facts and what we call the u. S. Model, including whats worked and whats best for our energy future. The economy, the consumers, and the environment as our guiding principles. The states demonstrate our bipartisan compromise can lead to significant increases in Energy Production and environmental protection. Nationally according to the latest epa data, in 2013 Greenhouse Gas emissions were 9 below 2005 levels, even as our population, energy use, and Gross Domestic Product have increased. Proof that the u. S. Model is the most effective way to better protect the environment while growing the economy and increasing our Energy Production. Our nations emissions are lower as a result of greater use of cleaner burning natural gas. The oil and Natural Gas Industry itself reduced its own Greenhouse Gas emissions by the equivalent of 55. 5 Million Metric Tons of co2 in 2015 while dramatically increasing our production right here at home. We in the industry have invested 90 billion in zero and low carbon emitting technologies from 2000 to 2014. Almost as much as the entire federal governments investment of 110 billion. We also know what the difference between proEnergy Development and antiEnergy Development will mean to our nations economy, businesses, families, consumers, and for our environment. Last year a study by woodmckenzie found with the right Energy Policies americas oil and Natural Gas Industry could support as many as an additional 1 million american jobs in 2025 and as many as 2. 3 million jobs in 2025. The study looked at the World Economic difference between proenergy Development Policies and antienergy Development Policies espoused by some. Over the next 20 years, proDevelopment Policies could increase local, state, and federal government revenue by more than 1 trillion and boost household Discretionary Income by as much as 508 billion. Further average annual Household Energy expenses would be lowered by approximately 360 per year at the same time. Conversely, national Energy Policies that discourage Energy Development and constrain u. S. Refiners could lead to a decrease in 500 billion in government revenue from 2016 to 2035. Because according to the eia fossil fuels will account for 80 of u. S. Energy consumption through 2040 and the agency estimates that even under the bestcase scenario for alternative fuel use, fossil fuels will still account for 78 of our energy needs. This is just another data point in support of the longstanding tentative Energy Policy this is held by most economists, academics, and government analysts. Fossil fuels will remain the Foundation Upon which our modern society rests for many decades to come. Encouragingly there is growing support within congress for this u. S. Model, as we like to call it, this style of Energy Policies. As many in this room are well aware, just last month as congress was finishing the peoples business before recess, we witnessed a rare glimpse of bipartisan with the lifting of the 40year ban on crude oil exports. Lifting the ban is a win for American Consumers and the economy, which found that lifting that ban could save consumers as much as 5. 8 billion per year on fuel costs. Congress action was a victory of longterm vision and factbased policy making over political ideology and ie d ideological dogma. There are an ardent few who continue to believe that keeping our nations abundant Energy Resources in the ground is a credible and viable National Energy strategy. There are some in government who will advance their favorite forms of energy to the dubious and untested end heedless of the potential harm it could cause to our economy or how much cost it would impose on consumers or how it could impede continued environmental improvement. For example, ignoring clear Consumer Preference in spite of current levels of production in refining, the epa continues to push the renewable fuel standard. In 2014, the Congressional Budget Office study projected that the rfs could raise the cost of fuel prices because, quote, given the design of the rfs, the cost of encouraging additional the cost of encourag adpigs additional sales falls on producers and consumers of gasoline and diesel. Whats more, theres very little consumer demand for these high ethanol fuels. According to the dma, the annual amount sold in 2014 is less than 1 of the annual gasoline demand. Lower gasoline prices and reduced emissions have larnlly been achieved through Industry Innovation and market forces. It is well passed time that we amend renewable fuel standard. It is a relic of our nations era of Energy Dependence that poses a direct threat to our nations economy, risk reversal and important environmental improvementeds as concluded by the National Academy of sciences and could raise energy costs for American Consumers. Another example is does in fact seek to pick winners and losers in the energy market, not based on market conditions, Consumer Preference or economic reality. The reality is that the approach of the rule is for a problem that is already being successfully addressed in the marketplace. The treatment of natural gas is a good example. But that it has been a gamechanger. Yet, in releasing the clean power plant last summer, the white house talking points bragged the rush to natural gas is eliminated. Presumably, a means to spur more renewable energy. In 2015, natural gas produced more electricity than any other fuel for the first time in u. S. History. By no coincidence, that period also saw the lowest Carbon Emissions from the power sector. And far from reducing opportunity for wind and solar power, natural gas provides the Reliable Base Load Power necessary to integrate those intermittent sources. States and electric utilities are required to provide clean, reliable and affordable energy. Natural gas will continue to provide all three with or without the clean power plan. More broadly, however, the clean power plant could further drive up costs for consumers who live in regions of the country who pay more than they should for energy they need because of the growing strain on our Energy Infrastructure. The eia estimated that new england residents paid up to 69 more for their electricity than the National Average just last winter. And the industrial sector has paid up to 90 more for electricity than the National Average, in part because of infrastructure limitations. From tomorrows pipelines, marine terminals and other needed infrastructure. By their ability to stop the keystone excel pipeline, antifossil fuel advocates have set their sites on all Energy Infrastructure projects. Their arguementeds against this Energy Infrastructure project are not based on economic merit or on true environmental impact. And the decision to reject the pipeline simply ignores the pipelines many benefits. Including strengthening ties to one of our closest trading allies, can that. It creates thousands of wellpaying jobs. The generations of millions of local state and federal tax revenue and the reduction in Greenhouse Gas emissions in developing Canadian Oil Sands that have been achieved to date. Keystone is a good example how facts can be stubborn things. That take little heed of political ideology or preconceived notions. In this case, the stated reason for denying the keystone excel pipeline was environmental protection. However, that was contradicted by the administrations own state department report, which concluded that after seven long years and five comprehensive reports, that the denial of this pipeline would actually increase Carbon Emissions by 42 . The oil is finding its way to the marketplace through alternative means. And, as they concluded prior to that decision, it has increased Carbon Emissions 42 as a result of that unfortunate denial. The demonization remains a powerful, cautionary tale of the dangers of Energy Policy driven by ideology rather than economic reality. And has a Chilling Effect on Expansion Efforts for our nations Energy Infrastructure. Thats not just bad national Energy Policy. Its also bad news for our nations economy. According to an ihs study, the amount of energy sectored infrastructure needed through the middle of next decade could spur 1. 15 trillion in private capital investment. 1. 15 trillion in private kaptal investment. Ihs also projects an infla structure investment to support more than 1. 1 million american jobs nationally. Finally, another example when it comes to energy is the glaring difference between Energy Production on state control. And federally controlled lands. Crude Oil Production remained flat between 2009 and 2014. That energy from fossil fuels is and for decades to come, will be fundamental to our society. And, as a result, the policies we put in place in that area will have repercussions well beyond the well head, the pumping station or the refineries. They have real world impacts on American Families on small businesses. As the president s last full year in office begins, we hope that he will take note of and help foster what we like to call the u. S. Model. We hope that hell note that the alreadyheavy regulatory burden, almost 100 pending regulations on the oil and gas industry. Upon the oil and gas can hinder what he hopes to be one of the administrations defining legacies, environmental improvement. And while the outcome is far from clear, it is certain that no matter who becomes the 45th president of the United States, he or she will take a nation that is first in oil and natural gas production. First in refining evercleaner fuels and first in reducing Greenhouse Gas emissions. They will also have a choice to continue the United States positive role in Energy Abundance, global leadership, domestic Economic Opportunity and environmental improvement or to dismantle the progress weve made by implementing policies born from ideology and on board to science or to facts. And if the past is indeed a prologue of novembers election approach, our nations civil discourse on our most pressing nationalish chutes will likely include energy. The central message is straight forward. Energy is fundamental to our society. And thanks to American Innovation and entremendouentrel spirit, United States stands as the Energy Leader and will remain a Global Energy leader only if we get our nations Energy Policy right today and tomorrow. There will be those who rhetoric consists only of personal attacks, misinformation and political with an attempt to reduce the discussion to a sense of false choices. We will, instead, work toward proven, Realistic Solutions as demonstrated by the facts of the u. S. Monologue. In this new year, let us all resolve to Work Together. And it will keep the Energy Conversation focused on whats most important. Energys role in increasing american prosperity, long term job creation and Economic Opportunity coupled with environmental improvements and enhanced National Security. Our goal is to keep the positive momentum of the last few years and to end the politicalization of energy for petty partisan ends. The reality is that no Single Source of energy will alone solve or problems or is the source of all of our woes. Moreover, no group holds all the answers to the voougss of the challenges that we face. What history has taught us as an america prosperous most when we Work Together for the common good. I continue to believe and hope that all of us ultimately have the same goal, to lead our community, our nation and our world better than we found it for the next generation. They deserve nothing less than our collective best efforts to that end and they are counting on us to put into place realistic policies of enhanced our Nations Energy security and National Security. Thank you very much for your attention. Im happy to take a few questions. Thank you very much. [ applause ] i think you held up pretty well. You got a little stronger as you went. Did i . Reminder that if you have a question, please, get them to either chloe or to jocelyn. Jack, the first question is what is apis top legislative priority now that the Oil Export Ban has been lifted. Well, the Oil Export Ban was one of many priorities for us. Let me suggest as i touched on today that the renewable fuel standard is another current policy that needs to be significantly amended or repealed. And so i expect, as we work with our membership, that thats another issue well focus on. I cant overemphasize how important these i believe fra structure issues are. As i look at my Partnership Around the tables, we have a great opportunity here to step beyond, as i mentioned earlier, the projected investment is 1. 15 trillion. Thats all private capital. I dont know of any other project, with all due respect to the highway bill, thats a big number. You couple this investment with the highway bill and others, and you can see a real job opportunity for the country. At the same time, were producing and moving a lot of energy that have great benefits to consumers. Were talking earlier about some of the issues going up through new england. Consumers there are paying 69 higher than the National Average. Why . Because we cant get the natural gas there. That put people to work, build the pipeline, safe pipelines. We transport everything we move, 99. 99 06 it safely. Weve had a good record. Were committed to that. We can all do this together. I have two questions. What are your thoughts on what happens at the Political Leadership falls in saudi arabia and the Global Energy markets. And moreover, what happens to reliability of Energy Supplies and impact on American Consumers. Csuu÷ ten years ago, i believe and the markets show, that there would have been Significant Movement why is that . Because the United States has come in as a major player. Things like the crude export ban be lifted where the geopolitics will never be the same. We need to be focused at home. When you look at exports as opportunities not only for our own domestic production, creating jobs, but think about what that could do around the world if we took cleanerburning natural gas and started to displa displace. The is it going to be difficult to fire up the public about these issues . I dont think so. I think the public, well beyond what we might call the Traditional Oil and gasproducing areas, has started to get a good taste of what this means. What does 2 a gallon gasoline mean versus 4 a gallon gasoline. If we do that, i believe the public will get interested. If you look at survey research today, three quarters of the American Public says yes, we want those jobs. Yes, we want to produce more oil and natural gas right here at home. And then, when they begin to understand what we like to call the u. S. Model, that cleaner burning natural gas has made the United States the leader in carbon reductions in the world, it would have a very different dynamic to it. We can start showing improvement. So i believe the more the American Public understands, the more engaged theyll be. I think the first thing we ought to do is we need to realize that all the marketdriven dynamics that were experiencing today the worst thing we can do is get government to intervene and try to manipulate the market place. The best opportunity is long range, long term visionary policies. Those are the opportunities we need. Were not asking for government swer vengs. Were asking for the opportunity to compete on a global scale. The initiative to lift the ban on experts from iran and allow them access to that global marketplace. We finally allowed the u. S. Producers to do the same thing. Just let us compete what we can do at home here just like weve demonstrated over the last five or six years where weve created hundreds of thousands of wellpaying jobs. Let the market work. Lets deal with the science and the data. The science today shows the u. S. Leads the world in Carbon Emission Reductions why . Because were producing vast volumes of cleanerburning natural gas, which is now become economic and consumers are benefitting to the tune of 1200 a family per year. Thats what we need as a society. So thank you very much. Thanks for the easy questions. Theyre always appreciated. Thank you for being here today. We greatly appreciate it. Thank you