Skip to comments.Calls mount to end ban on oil exports as US production booms
Posted on 02/05/2014 5:24:15 PM PST by jazusamo
When the Arab oil embargo of 1973 shocked the U.S. into long gas lines and rationing, Congress approved what was a no-brainer at the time -- a ban on exporting crude oil produced at home.
But today, with domestic oil production booming, some are questioning whether that ban should stay in place. The new concern is that the U.S. has more oil than its refineries can handle.
This ban threatens record-breaking U.S. oil production and American jobs by creating inefficiencies, gluts and distortions, Sen. Lisa Murkowski, R-Alaska, recently testified at a congressional hearing.
Murkowski has sent a letter to the White House asking President Obama to lift the ban on oil exports, even as the U.S. still imports 40 percent of its oil.
Supporters of lifting the export ban argue that oil is a world commodity -- and more of it on the global market will drive everyones gas prices down and create jobs in the U.S.
(Excerpt) Read more at foxnews.com ...
Looks like Murkowski is trying to help Sheila Jackson Lee and Conyers with their new Congressional Full Employment Caucus submit drafts of executive orders for 0bama to sign.
We need to build more refineries.
“Supporters of lifting the export ban argue that oil is a world commodity....”
Bull$** More one worlder crap. We need to keep OUR oil HERE. Use it to power industry in AMERICA to create jobs and export what we produce, not our raw products. I don’t give a damn about oil prices overseas anymore than they give a damn about us.
Absolutely, and to he** with Murkowski, 0bama and the environuts that are even against pipelines to move oil.
I say export the food right off our kitchen table!
Yup more refineries and pipelines to move product.
So the U.S. government isn’t any different than Hugo Chavez when it comes to nationalizing our energy resources, eh? LOL. Just goes to show you why so many people around the world think of us as a nation of unprincipled A-holes.
Zero imported oil...then export it.
I would still release the restrictions on exporting US oil
Wonder if we have same export restrictions from NAFTA like Canada does....Canada must sell 2/3 of its export to the US
We could if we could get rid of the enviro-wackos, our socialist commie pResident, the regulations from the EPA, tax upon tax upon tax, etc.etc.etc.
We are so screwed.
I agree. And while we’re at it, do the same for natural gas. It’s time to destroy OPEC. Let’s make the Saudi’s worse nightmare come true.
Amen to that...I full well remember the oil embargo in 1973 and don't want to go through another one.
In my view by not exporting until we're not importing a drop protects us from those not friendly to us.
If Alaska can’t move crude to the lower 48, I don’t mind if they close our trade gap by selling some of it to Japan.
But we need the Keystone approved and finished, along with a dozen new refineries started, restrictions on coal mining and coal plants lifted and a hundred other shackles on the energy sector lifted.
We’d create millions of jobs, save people billions of dollars a year on energy costs and thus free up money for the “discretionary” spending that fuels the service economy.
> “This ban threatens record-breaking U.S. oil production and American jobs by creating inefficiencies, gluts and distortions,” Sen. Lisa Murkowski, R-Alaska, recently testified at a congressional hearing.
No export of oil until we provide 100% of United States needs. Then if we do, build up reserves, then sell overseas.
Why would we export a product we produce while we are still importing that same product from outside of the country? If we are producing so much oil then we should cut back on what we are importing first.
If I grow food in my garden it would make zero sense for me to harvest that food and sell it then go buy that same food from the store for a higher price.
Remember the propane debacle.
Good God. What was her "reasoning" on that one?
Remember it? Right now, in our area, we are IN it, big time.
Exactly right. My family's electricity costs have risen so dramatically that, at least until spring, our discretionary spending has had to be cut by over 50%. We expect high billings in unusually cold weather -- but not THIS high.
A very good measure of the strength of an economy, and a civilization, is the affordabililty and availability of plentiful energy. That's not at all to knock efficiency IF the cost of the efficiency is reasonable, but power is... power.
This rule harms America. End it and let them export oil.
Any comments or insights on this?
Why? We already refine more petroleum product than we use ourselves and export the surplus.
Dreamers of cheap oil looking at the Demand Side curve of economics are ignoring the Supply Side. We will end up importing more oil from other locations as the investment dries up if we try to force prices below market value.
Reality is we are still the biggest demand for the local oil. And if we import some cheap heavy oil due to the capabilities of our refineries while exporting some expensive light oil, we will help the trade balance at the same time.
Thanks for your posts.
This law harms American liberty and independence. It helps our enemies.
Who benefits from this blockage?
I didn’t ask the question that you quoted and responded to.
The American consumer and worker. Use the oil here for American manufacturing to fuel American factories, and to reduce the price of American fuel and heating oil.
You can make an argument for the other approach also, but I think this one is more valid.
Let's take your criteria and see what happens as this embargo continues. Keep in mind that low priced energy is important to economic growth and always has been. Are you thoroughly familiar with supply/demand curves, fixed and variable costs, fungible commodities, etc.?
The American consumer includes American businesses (I presume you're talking geography as in within the continental US, plus Alaska and Hawaii) and that includes oil companies. If a glut of oil occurs two things happen: suppliers cut back and as a consequence oil prices rise. Petroleum products for heating homes are a very small part of the market.
Imagine if the law were such that you must keep the entire product of your labor within the physical confines of your own home. In short order you'd impoverish yourself quickly, despite your skill and the plenty you've produced.
The best way to serve the American consumer (who by the way is paid by American businesses, you must produce before you can consume), is to open the market and sell to the highest bidder all that they'll buy. This undermines our enemies in OPEC and no matter what a cartel is an enemy to America wherever it occurs. Think about it.
Well, you convinced me.
Good. May I ping you to help when other FReepers aren’t understanding the concept of free trade.
Yes. I do believe in Milton Freedman.