Lifting the crude oil ban would reinvigorate U.S. economy

National fiscal policies may seem to have little effect on the average American family. Yet the economy’s direction, whether negative or positive, influences everyday decisions about consumer purchases, including what groceries to buy.

As the national conversation on U.S. crude oil exports continues, it is undeniable that exporting U.S. crude oil would grow the nation’s economy. A robust American economy can offer low unemployment, healthy retail sales, consumer confidence and ample revenue for governments to provide services to citizens. And economic growth propels business and consumer optimism, creating a domino effect that supports more economic growth.

Crude oil exports would expand markets for America’s oil, encouraging producers to invest in additional resource development here at home. But increased production only scratches the surface of potential benefits that extend far beyond the oil patch.

There is a solid economic case for lifting the decades-old ban, supported by both government and academic studies. They conclude that exports would broadly benefit the national economy; stimulate domestic production, even in today’s low-price environment; protect and create jobs and decrease consumer prices at the pump. Despite such findings, the antiquated ban on U.S. crude exports remains, creating barriers to growth and threatening the nation’s long-term economic development.

Benefits beyond the industry

Exporting U.S. crude oil would have far-reaching effects, rippling far beyond the oilfields into the American economy. A recent IHS Energy report indicated that every new oil production job would create three jobs in the extended supply chain, and another six in the broader economy. IHS predicts total U.S. job creation due to exports would average 394,000 per year from 2016 through 2030. This includes jobs far beyond the energy sector—in information technology, equipment and machinery, construction, professional and financial services and others.

U.S. oil exports would also have a positive effect on U.S. GDP. Every dollar created in the oil and gas sector would generate two dollars in the broader supply chain, adding $86 billion to GDP over the same time period, according to IHS.

How would crude exports impact your state?

The benefits would extend nationwide, as the broad supply chain employs workers in all 50 states. Those with high oil production, such as North Dakota, would benefit directly. But even states with virtually no production, like Florida and New York, would see jobs created in sectors unrelated to oil and gas production.

https://youtu.be/wfDyQay_MKg

To learn more, visit www.powerincooperation.com.

Content From