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  • Legalize Crude Oil Exports

    An energy renaissance is underway in the United States. According to a new report by the International Energy Agency (IEA), America’s decades-long dependence on foreign oil may soon be over. By the mid-2020s, the United States is set to surpass Saudi Arabia as the world’s largest oil producer.

    Even more promising is that by 2030, the U.S. is set to become a net oil exporter—but not if U.S. policymakers have anything to say about it.

    In 1975, the U.S. government banned crude oil exports with only some limited exceptions. At the time, U.S. energy markets were in dire straits—the combination of government price controls and the Arab oil embargo crippled oil and gas supplies to U.S. consumers. Despite some of the bad policies, domestic producers responded by dramatically increasing production.

    Sadly, policies that prohibit or unnecessarily slow production on federal lands and waters as well as bans on crude oil exports limit producers’ ability to respond to higher prices.

    Limiting exports of crude oil discourages energy exploration in the United States. Companies hoping to tap America’s oil resources may be discouraged from doing so because they cannot take advantage of the global marketplace.

    Export limitations also discourage production because they cause a domestic surplus. This surplus cannot be cleared because producers cannot take advantage of other prices on the international market—like Brent crude from the North Sea, whose price is much higher than domestic West Texas Intermediate crude. Ultimately, these problems are passed on to the consumer in higher prices.

    The U.S. government has long been reluctant to export its energy resources—from its historic bans on crude oil to recent foot dragging on natural gas. Yet exports have long been touted as a way to grow our economy out of the current recession. What better way to do this than by allowing one of our most promising industries to take advantage of billions of global energy consumers?

    Posted in Energy, Featured [slideshow_deploy]

    7 Responses to Legalize Crude Oil Exports

    1. D. E. Fee says:

      first lift the ban on new refineries so we can export crude or gasoline both of which we import

    2. becky says:

      Nope! Keep our natural resources here for AMERICANS! You know, we have been stealing all those natural resources from foreign countries for years according to the communists now in control of our government. So we don't want to add to that theft do we????? Hmmmm????? If we export they will be stealing FROM US according to the communist's-in-chief logic. Why aid and abet this theft?

    3. Lloyd Scallan says:

      Mr. Olson, are you naive enough to believe Obama will allow more drilling, which results in more production, which will result in more exports? Why do you think it was so important for Obama shut down all drilling operations in the US after his actions and non-actions, during the BP spill, which made the damage much more severe than it should have been. Why do you think Obama just closed another 1.6 million acres of federal lands to exploration? Do you not yet understand who and what Obama and his agenda is?

    4. pete says:

      Do we necessarily want crude oil going to china vs usa manufacturers. I am good with what comes out of the ground, has to be used inside the US and turned into something else before it can be exported. We should do the same thing for natural gas. Natural gas needs to be turned into something else that is value added before it can be exported. This is one of the few things that I think that the federal government can do that makes sense. Currently we export gas, diesel, motor oil etc. How long before we do not even manufacture those products.

    5. Jim says:

      Article 1 Section 9 of the Constitution prohibits taxes and duties on exports. If they can't tax exports, how can they justify a total ban? Has anyone ever sued the US government over the ban?

    6. M. J. Castro says:

      No, exporting crude oil should only be allowed after the US has a surplus of oil produced from under its own lands. If we become awash with oil, then it is logical to believe that gasoline prices should come down which would benefit the consumer and allow more money to be available for other parts of the economy. I don't believe the majority of the independent oil producers are in favor of oil exports. Additionally, we should be uitilizing natural gas as a significant portion of our transportation fuel.

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