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.