Free Trade in Oil and Natural Gas, The Case for Lifting the Ban on U.S. Energy Exports

Abstract

Not only should the US lift its ban on exporting oil and natural gas in light of today’s economic and political climate, but it was wrong to ever ban such exports in the first place. The US should cease to view its energy resources as a purely domestic issue but rather a global one that impacts not only global prices in energy but also international affairs. Energy security is a world-wide problem, not a US, China, or EU problem, and we are all dependent on the world oil market. As the US looks to extricate itself from energy dependence on the Middle East, increase its energy security through trade and innovation, and maintain a robust economy, the benefits of lifting the ban on US energy exports outweigh the costs say the authors. The writers propose that allowing US exports could add 8.7 million barrels per day of crude oil to the world market while also reducing possible shocks to the world economy. Griffin and Gause also believe that lifting a ban on US natural gas exports could reassure Western allies and send a message to Russia to stop holding Europeans hostage to its high gas prices in times of political strife.