Sabrina Fang | 202.682.8114| fangs@api.org

WASHINGTON  May 12, 2011 ─ API today voiced support for an amendment by Texas U.S. Representative Mike Conaway  (R-TX)  to repeal Section 526 of the Energy Independence and Security Act  (EISA) of 2007 that could preclude U.S. refiners from using crude oil derived from Canadian oil sands. Failure to repeal Section 526 will increase the nation’s dependence on imported oil, while jeopardizing thousands of American jobs that depend on the continued flow of Canadian oil, API said.

“Section 526 of the EISA is bad for America,” said API Executive Vice President Marty Durbin. “Canada is the largest U.S. oil supplier. Our neighbor to the north is a reliable trading partner and strategic resource for meeting our nation’s growing energy demands and making America more energy secure.”

The economic impact of Canadian oil sands development is expected to create more than 342,000 new American jobs and add an estimated $34 billion to the U.S economy by 2015. Washington needs to embrace our robust energy partnership with Canada, said Durbin.

Canada sends more than 99 percent of its oil exports to the United States, the bulk of which goes to Midwestern refineries.

According to the government of Alberta, the province’s oil sands produce 1.5 million barrels per day, with 3.3 million barrels per day projected by 2019.  Alberta provides more oil to the U.S. than Saudi Arabia.

API believes Section 526 goes against the intent of the Energy Policy Act of 2005, which declared that oil sands and other unconventional fuels are strategically important resources and directed the Department of Defense (DOD) to develop a strategy to use these fuels to reduce the reliance of oil from unstable regions of the world.

"If not repealed, Section 526 could increase fuel costs for our military and severely restrict the Pentagon's ability to get fuel from our strongest ally, Canada,” said Durbin. “The DOD is the biggest consumer of jet fuel. At a time when American forces are combating terrorists abroad, it is especially necessary for the Pentagon to have the versatility to secure and develop alternative sources of fuel from a friendly ally."

API represents more than 470 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million in revenue to our government every day, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.