Ending the Crude Oil Export Ban in 2015
Abstract
The takeoff of hydraulic fracturing (fracking) has both increased the US oil supply and depressed the global price of oil products, which has already greatly impacted the US economy. Despite innovative fracking methods, the benefits of the oil abundance are significantly limited because of the 40-year old export ban. The ban restricts producers from selling their raw crude resources abroad, where transportation may be cheaper and demand may be higher. My research explores whether ending the crude oil export ban in 2015 would produce greater economic benefits than the status quo. In my study, I hypothesize that the ending the ban would result in even cheaper oil-products and a stronger economy. My literature review includes studies and data from Columbia University, the US Energy Information Administration, and other organizations to help me compare the changes provided either the ban ends or stays. Using economic theory and empirical evidence, I explain how allowing crude exports would cut energy costs, increase employment, and excited economic growth more than the current crude market.
Ending the Crude Oil Export Ban in 2015
The takeoff of hydraulic fracturing (fracking) has both increased the US oil supply and depressed the global price of oil products, which has already greatly impacted the US economy. Despite innovative fracking methods, the benefits of the oil abundance are significantly limited because of the 40-year old export ban. The ban restricts producers from selling their raw crude resources abroad, where transportation may be cheaper and demand may be higher. My research explores whether ending the crude oil export ban in 2015 would produce greater economic benefits than the status quo. In my study, I hypothesize that the ending the ban would result in even cheaper oil-products and a stronger economy. My literature review includes studies and data from Columbia University, the US Energy Information Administration, and other organizations to help me compare the changes provided either the ban ends or stays. Using economic theory and empirical evidence, I explain how allowing crude exports would cut energy costs, increase employment, and excited economic growth more than the current crude market.