A new report from the non-partisan Congressional Budget Office (CBO) confirms that removing export barriers for U.S. crude oil could incentivize higher domestic production, grow the economy, increase federal revenues, and put downward pressure on gasoline prices.
“The CBO report makes it clear that lifting America’s outdated export restrictions will help to grow the economy and save consumers money,” said API Director of Upstream and Industry Operations Erik Milito. “This is the same conclusion supported by study after study, including those from the Government Accountability Office and the Energy Information Administration. It’s time for policymakers to embrace free trade, so that we can maximize the benefits of America’s energy revolution.
“America’s growth as an energy superpower has been a game changer, creating a more competitive global market, where one group cannot easily control prices. By giving producers access to a free market for America’s crude, we can grow that momentum, create more jobs, and support our allies overseas.”
The CBO report, which examines the economic benefits of America’s shale energy revolution, concludes that exports would have “positive economic and budgetary effects” and “U.S. consumers of gasoline, diesel fuel, and other oil products would probably benefit ... because those prices depend primarily on the world price of crude oil, which would decline slightly once lower-priced U.S. crudes were available in the international market.” The CBO cited a potential decline in gasoline prices ranging from 5 to 10 cents per gallon.