Posts Tagged ‘Crude Oil’
June 4th, 2015 at 3:19 pm
New Study: The Economic Case for Crude Oil Exports is Clear
Posted by Print

This week, Dr. Margo Thorning, Senior Vice President and Chief Economist for the American Council for Capital Formation (ACCF), and William Shughart, former Federal Trade Commission (FTC) economist and professor of economics at the Jon. M. Huntsman School of Business at Utah State University, convincingly set out the economic case for finally allowing the export of U.S crude oil in a study entitled, “The Economic Case for Lifting the Crude Oil Export Ban.”

In their paper, the two notable economists analyze multiple macroeconomic studies by highly-respected public policy think tanks, including the Brookings Institution, IHS, the Aspen Institute and ICF International.  All reached the same conclusion:  Removing the crude oil export ban will bring measurable economic advantages to our economy and our nation.

And what are those economic advantages?  First, allowing oil exports will  create high-paying jobs, increased economic investment, higher gross domestic product (GDP) and downward pressure on fuel prices.  Specifically, the Brookings Institution study analyzed by Thorning and Shughart found that lifting the ban will reduce unemployment by an annual average of 200,000-400,000 jobs between 2015 and 2020. For its part, ICF predicted gains of up to 300,000 new jobs by 2020.

Accordingly, continuing to observe our outdated and restrictive crude export policy, we are demonstrating a blatant disregard for economic growth and expansion, particularly in the jobs sector.

Along with the significant economic benefits, we also possess an opportunity to strengthen ties with our trading partners in the global market, upholding the very free trade principles we encourage other countries to practice.

Additionally, the new paper highlights the contradictory nature of the U.S. prohibiting crude oil exports while professing to the world that we practice free trade. Crude oil is no different than other domestically produced products bought and sold daily in the global economy, and removing the ban and instituting a more truly free market boosts our credibility as a nation that practices capitalism and open trade.

Simply put, changing our outdated energy policy on crude exports would be a sound economic approach that takes advantage of our current domestic energy abundance. The U.S. would benefit on the economic front and position ourselves to become a top player in the global energy market while more truly embracing a free trade doctrine.

That’s a win-win for our economy and the American people.