Analysts have stated that in the event of U.S. lifting the 39 year old ban on exporting crude oil from the United States gasoline prices would drop, which will benefit domestic consumers.
This new study was conducted by consulting firms ICF International and EnSys Energy.
Plans to export fossil fuel have often been criticized as it would lead to higher prices at home. However, a recent study suggested that exporting U.S. crude would be economically viable for consumers. Increased exports would not only bring down gasoline prices but also lead to increased supplies and jobs in America.
The study also suggested that allowing crude oil export would bring down cost of heating oil and diesel fuel. Reduced prices will help American consumers save nearly $5.8 billion every year between 2015 and 2035. Prices would drop 3.8 cents per gallon in 2017, and 2.3 cents per gallon from 2015 to 2035.
Lifting the ban could also help generate 300,000 additional jobs in 2020, make a significant contribution (nearly $38 billion) to the U.S. economy and reduce the country’s trade deficit by $22 billion within the same year.
In 1970s, the U.S. government barred exports of crude oil. However, the country has witnessed significant changes in the oil and gas industry, brought about by the new technology for drilling shale.
In 2013, U.S. produced nearly 7.84 million barrels of crude oil per day, which accounts for over 10 per cent of the total global production.
By 2020 the country is expected to make a transition from being a net importer to a net exporter, primarily due to the increasing shale production which has exceeded domestic demand. Reports also suggest that on a supply-demand basis, the United States will soon succeed in accomplishing a self-sufficiency rate of 90 per cent.
Oil companies want the U.S. government to lift the ban as they are eager to sell shale oil in the international market for a higher price. Over-supply within the country has forced them sell oil at cheaper rates.
A new era is believed to have dawned for American energy. Once the energy trade policies are modified, U.S. will be able to further consolidate its position as the global energy superpower.
No comments:
Post a Comment