Sen. Murkowski: New Study Details Economic Benefits of Ending Oil Export Ban
WASHINGTON, D.C. – U.S. Sen. Lisa Murkowski (R-Alaska) today welcomed the release of a new study detailing the potential benefits to the U.S. economy of lifting the federal government’s 1970s-era ban on oil exports.
The analysis by Daniel Yergin and the consultancy IHS estimates ending the prohibition on exporting most domestic oil supplies could boost U.S. production by more than 2 million barrels a day, inject $750 billion of new investment into the economy, and reduce gasoline prices for American drivers by as much as 12 cents a gallon.
“The IHS analysis reinforces what I’ve been saying for months – modernizing the regulations that govern energy exports will create jobs, boost energy production, and help lower global oil and gasoline prices,” Murkowski said. “The current rules of engagement on energy trade were written at a time of energy scarcity, not abundance, and they are causing distortions in the market that is undervaluing America’s energy resources. It’s time to reverse a policy that has far outlived its usefulness – something that would benefit the entire country.”
The IHS study found that removing the ban on oil exports would have positive impacts on employment, GDP, and energy production, including:
· Increased oil production of 1.2 million to 2.3 million barrels per day;
· Declining gasoline prices by 8 cents to 12 cents;
· Creation of 394,000 to 859,000 jobs;
· Increased government revenues by $1.3 trillion to $2.8 trillion;
· Increased annual GDP of $86.4 billion to $170 billion.
The benefits of free trade would extend beyond oil-producing states, as well, with 24 percent of the new jobs created by lifting the ban occurring in states without production, according to IHS.