The Brookings Institute released a study last week comparing the effects of immediate lifting of the U.S. crude oil export ban vs. delaying till 2020.
The study data showed a positive uptick for the GDP in all cases, a 0.14 change in welfare, annual reduction in unemployment, additional production of 1.5 MMBOD in 2015, decline in gasoline prices by 9 cents per gallon in 2015, U.S. gains ability to increase exports by 2.8 MMBOD in 2015 and 5.7 MMBOD in 2035 if OPEC decides to cut output.
One of the report’s key findings was summarized as follows:
“Permitting the export of crude oil will enhance U.S. global power in several ways, including: reinforcing the credibility of U.S. free and open market advocacy; allowing for the establishment of secure supply relationships between American producers and foreign consumers; increasing flexibility to export crude to others to address supply disruptions; empowering another non-OPEC nation to meet the growing energy demands from countries in Asia, as well as other rapidly developing nations; shifting oil rents to the U.S. from less reliable suppliers; and providing our own hemisphere with a competitive source of crude supply. Most importantly, allowing crude oil exports will increase revenues to domestic producers helping to maximize the scope of the production boom, boosting American economic power that undergirds U.S. national power and global influence.
To read the entire findings, click here.
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