Author Topic: Biden administration idea to ban oil exports condemned as 'deeply flawed'  (Read 221 times)

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Offline Elderberry

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WND By Earl Matthews 11/12/2022

The steep rise in U.S. gasoline prices over the past year has placed a huge burden on working families, and government leaders are scrambling for potential solutions. Unfortunately, one proposed idea – the reinstatement of the crude oil export ban – would carry massively negative economic, national security, and geopolitical implications.

The Biden administration officials and members of Congress who have floated this deeply flawed idea of limiting exports apparently believe that if all of the oil that the United States produces stays within our borders it will make more fuel available to us and lower prices.

But these export ban supporters fail to understand the basics of how oil markets work. As the Dallas Federal Reserve explains, the price of oil is determined by the global marketplace and for that reason, “a cessation of U.S. crude oil exports would lower the supply of oil in global markets and raise its price.” In fact, between 2014, the year before the crude oil export ban was lifted, and 2019, U.S. crude oil exports rose by 750 percent while the average price for gasoline fell by 22 percent.

Not only would such a ban backfire and cause gasoline prices to increase for American drivers, but it would also alienate our global allies and undermine U.S. national security.

During this global energy crisis, our trading partners have been able to count on the United States as a reliable supplier of crude oil who won’t weaponize energy resources and this has strengthened our relationships with allies around the world.

More: https://www.wnd.com/2022/11/biden-administration-idea-ban-oil-exports-condemned-deeply-flawed/