Time to Lift the Antiquated Ban on Crude Exports

Photo: Charlie Neuman/U-T San Diego

Photo: Charlie Neuman/U-T San Diego

Gasoline prices continue to drop across the country with the national average falling to $2.50 per gallon.

Are low prices good or bad for the prospects for lifting the ban to export crude oil? The reality is it shouldn’t matter because energy free trade will benefit the United States in both the near term and the long run. That’s why Congress should lift the ban regardless.

One of the primary concerns among skeptics of lifting the crude export ban is the effect that increased oil exports might have on domestic gas prices.

Several studies have projected that lifting the ban would actually decrease gas prices both in the United States and globally. Because oil is a globally traded commodity and refiners are equipped to handle different qualities of crude oil, an open market for shipping crude would better match global refining capabilities. Despite the fact that all signs point to lower fuel prices in the U.S., the skepticism remains.

The federal ban on exporting crude oil has been in place since the 1970s to fight potential fuel shortages caused by the Organization of Arab Petroleum Exporting Countries (OAPEC) oil embargo. Rep. Joe Barton, R–Texas, recently introduced a bill to lift the still-in-place ban on crude oil exports.

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