Roll Call - The Growing Case for Ending the Crude Oil Export Ban

Op-Ed

By: Rep. Joe Barton & Rep. Henry Cuellar

The advantages of lifting the ban on crude oil exports are not just theoretical talking points discussed in the halls of Congress, but rather supported by a large and growing body of research by government agencies, academic institutions and think tanks across the political spectrum. The latest is a study released by the Harvard Business School and the Boston Consulting Group. It highlights the obvious benefits lifting the ban will have on American families and businesses, our economy and global allies.

First, lifting the ban will lower, not raise, domestic gasoline prices. This is perhaps the top issue raised by many of our colleagues who are understandably concerned with how a change in policy could affect prices at the pump back home. But numerous studies have shown lifting the ban would put downward pressure on domestic gasoline prices. The HBS and BCG study explains: "Crude oil exports increase the competitiveness of domestic oil production without affecting U.S. consumers. ... The overall effect of lifting the oil export ban could actually reduce global prices for gasoline by increasing the global availability of crude oil." This is consistent with findings from Columbia University that lifting the ban could save consumers as much as 12-cents-per-gallon and a number of other studies that reached similar conclusions.

Second, lifting the ban creates new world markets for the light crude oil being produced in the United States. To many, the notion of exporting American oil to foreign countries seems illogical because American produced oil should be consumed here at home. It's an easy argument to make and an easy talking point for people to understand. However, it's overly simplistic and ignores the complex realities that exist in regards to different grades of crude oil and refinery capacity.

Finally, lifting the ban supports free-trade policies. Trade is a crucial component of our economy and necessary for American businesses to remain competitive and create jobs. Just as our economy and U.S. industries benefit from the free trade of automobiles, computer software, fruit, vegetables, gasoline and other commodities, so would we benefit from trading crude oil. The study notes that "export bans are inconsistent with longstanding U.S. trade policy and undermine U.S. efforts in opening markets generally, which benefit U.S. producers and consumers across all industries."

Many in Congress have been carefully exploring the issue of crude oil exports and working to better understand the impacts a change in policy would have on our economy and constituents. Support continues to grow. Our bipartisan bill, HR 702, now has 70 co-sponsors representing 29 states and similar legislation in the Senate has the support of 14 senators from both parties. They understand that lifting the crude oil export ban is a win for our economy and consumers. Academics and business leaders have testified at numerous hearings on Capitol Hill and they confirmed, almost unanimously, that it will create jobs, increase U.S. oil production, lower gasoline prices and strengthen our national security.

We will continue to push our colleagues and the president to take action to end the decades-old ban on oil exports and make the U.S. a global energy superpower. Anything short of repeal would be a missed opportunity.

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