Recent increases in oil production in the United States have sparked discussions on whether it’s finally time to lift the decades-old ban on crude oil exports. I believe the answer is a resounding yes. Lifting this ban would help protect and create jobs, stimulate the U.S. economy and lower gasoline prices.
The United States is now the top oil producer in the world, but an antiquated policy prohibiting it from exporting crude oil threatens jobs across the nation. A law, enacted in the 1970s when oil supplies were short and domestic production was thought to be peaking, remains on the books, limiting markets for the abundant supply of U.S. crude oil and jeopardizing future growth for countless communities.
Lifting the ban would not just benefit energy company workers like myself, but a wide variety of businesses in every state. That’s because the process of exploring, producing and transporting oil and gas requires a robust nationwide supply chain. This includes jobs far beyond the energy sector, in information technology, equipment and machinery, construction, professional and financial services to name just a few. As more jobs are created, it also increases demand for other support services in the community – like restaurants, hotels, hospitals and schools.
A recent IHS Energy report indicated that every new oil production job creates three jobs in the extended supply chain and another six in the broader economy. IHS predicts total U.S. job creation due to exports would average 394,000 per year from 2016 through 2030 and as many as 1 million in 2018. The report also explains how every state will benefit in one way or another from increased oil production.
Studies also show that we are paying up to 13 cents per gallon more for gasoline than without the ban. This may seem counterintuitive at first, but it’s a basic economic principle that increased supply leads to decreased prices. U.S. consumers have enjoyed lower prices at the pump recently due to the decrease in global crude oil prices. And that recent downtick in price at the pump could be magnified if American crude oil were allowed to increase global supply.
The economic case is compelling here at home, but also across America. Lifting the outdated ban on U.S. crude exports would benefit people and communities.
Jayme Mead
Farmington
