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Crude exports could lower U.S. fuel prices

Like so many newspapers across the U.S., the Washington Times recently published an editorial that supports lifting the 40-year old ban on American crude oil exports. In his op-ed, Justin Sykes – who is a Federal Affairs Manager at Americans for Tax Reform – discusses the many different benefits of exporting crude, including the effect it could have on retail fuel prices:

Contrary to the claims of opponents, countless studies show lifting the export ban would reduce domestic gas prices and fuel an economic boom across the country, impacting all states, and not just producers. The primary argument from those opposed is U.S. gas prices would increase. However, this contention is unfounded and, in fact, a new study from the Obama administration agrees.

The study released this month by the U.S. Energy Information Administration (EIA) found that in the United States, “gasoline prices, would be either unchanged or slightly reduced by the removal of current restrictions on crude oil exports.” As the EIA points out, U.S. gas prices are largely set by global oil prices. If the ban were lifted, U.S. exports would increase global supply, which would drive down global prices. As global prices drop, this “in turn results in lower petroleum product prices for U.S. consumers,” the study concludes.

Most experts agree that allowing crude oil exports would spur domestic economic growth – including investment and reduced trade deficit. Lifting the ban on American crude exports could also save consumers $5.8 billion each year and would create jobs here at home

If you’d like to see the crude oil export ban lifted, click here to send that message to your representatives in Congress.


Oil Exports Vital to our Nation

In 1975, President Ford approved legislation that banned the U.S. from exporting crude oil. A lot has changed since then, but this ban is still in place. It’s time that Congress recognizes that we live in a different time than we did in the mid-1970s.

Sen. John Cornyn of Texas is helping lead the charge in the fight to lift the ban on American crude oil exports. Sen. Cornyn recently released an op-ed explaining why crude exports make sense in today’s world of surging oil production: 

All of our supply cannot be absorbed domestically. In order to keep production going, and our economy growing, energy producers need access to the global market. With production of domestic oil and gas projected to continue growing over the coming years, now is the time for Congress to lift the crude oil export ban. In so doing we can strengthen our economy and enhance our strategic standing around the world.

Lifting the ban is a commonsense way to kick-start the U.S. economy. Many think the ban only limits our domestic energy companies and those they employ, but this simply isn’t the case. One study estimated that every new production job in the oil field translates to three additional jobs in the supply chain — and another six in the broader economy. All in all, lifting the ban could lead to the creation of more than 800,000 jobs.

Read the rest of his op-ed here. Share it with your friends. Let them know why the oil export ban should be lifted. It’s not 1975 any longer. Our energy policy should reflect the reality of today’s energy market, not the thinking of the 1970s. And remember to tell your members of Congress that now is the time to end this outdated ban on American crude exports.

Failed 40-year old restrictions on crude exports continue to disappoint

Writing in, George Mason University economics professor Donald J. Boudreaux asks a question on everyone’s minds lately:

If unfettered commerce in oil is fine for Iran, then why not for America?

He is referring to the recent nuclear arms deal negotiated between the Obama Administration and the government of Iran that would lift sanctions on their ability to export crude oil, while U.S. energy companies continue to be denied that opportunity by a ban signed into law during President Gerald Ford’s administration. 

Professor Boudreaux’s op-ed, Lift U.S. ban on oil exports, is worth reading.  Especially now, as bipartisan legislation has been introduced in Congress that would finally rescind crude export restrictions. 

One of the facets of this issue Professor Boudreaux addresses is the mistaken conception that exporting crude would increase fuel prices. He says:

As the supply of crude and the capacity to refine it increase, the price of everything from gasoline to heating oil and diesel will fall significantly. A report from ICS International estimates that U.S. consumers would save $5.8 billion by 2035 thanks to falling prices if the export ban ends.

He also points to a study that indicates repealing the ban would trigger the average annual creation of nearly 400,000 new jobs and increase U.S. GDP by $134 billion in 2018 alone.

Many Americans want to see the ban lifted.  Tell your members of Congress that it’s time to lift the outdated crude oil exports ban.

Widespread support grows for oil exports.

The United States has banned almost all foreign sales of crude oil for the last four decades.  But a growing chorus of economists, elected officials, labor leaders, and energy industry experts – along with regular American citizens who want to see our economy improve and fuel prices stabilize – are calling for that export ban to be lifted.  The Wall Street Journal made this clear in their August 9 article – “Move to Allow U.S. Oil Exports Accelerates.

Writing about the possible impact lifting the ban would have on U.S. prices at the pump, author Amy Harder writes:

Exporting oil would encourage more U.S. drilling, which would boost supplies, putting downward pressure on the global price of oil. That, in turn, would ease the price of gasoline traded in world markets. Eventually, that could cut U.S. pump prices by up to 12 cents a gallon, according to several recent studies.

She also cites several other studies that find multiple consumer and economic benefits from exporting American-made crude oil. One of these studies, done by Jason Bordoff, a former energy adviser to President Obama, predicts that it could increase domestic oil production by as much as 1.2 million barrels per day between now and 2025.

Lifting the ban just makes sense. Reach out to your members of Congress today and tell them that you support lifting the outdated ban on crude oil exports.


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