New studies show that lifting the decades-old ban on U.S. crude oil exports would increase domestic production, boost economic growth and government revenues, put downward pressure on the price of gasoline, and create thousands of new jobs. One new study breaks down the economic gains generated by expanding crude exports on a state-by-state basis. The numbers are impressive. For example:
- Nine different states would experience economic gains of more than $1 billion in 2020.
- Eight states would reap 10,000 new jobs apiece by 2020.
- Texas alone would see $5.21 billion in additional economic activity and almost 41,000 new jobs by 2020, with North Dakota, California, New York, and others close behind.
Additionally, another analysis conducted by IHS showed that increased crude oil supply would lead to lower gasoline prices by an annual average of 8 cents per gallon. With those savings, the combined savings for U.S. motorists from 2016-2030 would translate to $265 billion.
Crude oil exports restrictions were put in place in the 1970s, a time when U.S. oil production was way down and the fear of shortages was real. Now domestic oil (and natural gas) production is off the charts, creating export opportunities that would benefit everyone, including American consumers.
IHS estimates that doing away with the crude oil export ban would support almost 1 million additional jobs nationwide and lead to lower gasoline prices for U.S. drivers.
Blake Clayton, Adjunct Fellow for Energy at the Council on Foreign Relations, summed up the case for crude oil exports like this:
Without compelling reasons for continuing to restrict crude exports, and given the potential benefits, Congress should liberalize the crude oil export regime. Republicans and Democrats alike, including President Obama, express support for boosting U.S. exports in general. Crude oil should be no exception.
There is no longer any reason to continue suppressing U.S. crude oil exports. Energy Citizens looks forward to positive action from the federal government on this important issue.