This week the U.S. House of Representatives may consider an amendment to the highway bill that would lift the current restrictions on U.S. crude oil exports. While lifting the U.S. crude oil export ban will provide a host of economic and national security benefits, it could also specifically help consumers and drivers by generating sizeable revenue to help pay for vital transportation infrastructure projects and by saving hardworking Americans money every time they fill up at the pump.
There is widespread agreement from economists, government agencies, think tanks and universities that lifting the U.S. crude oil export ban will put downward pressure on U.S. gasoline prices. This is because U.S. gasoline prices are based on global oil prices. Repealing the ban would lead to greater U.S. oil production and an increase in the global oil supply, which would drive global oil prices down. The end result is lower prices for consumers at the pump (Want to learn more? Check out The ABC’s of the Crude Oil Export Ban and Gasoline Prices).
The U.S. Energy Information Administration (EIA) recently released a report confirming this point:
“Petroleum product prices in the United States, including gasoline prices, would be either unchanged or slightly reduced by the removal of current restrictions on crude oil exports.”
The graphic below highlights the various economic studies and how much they conclude domestic gasoline prices will drop if the crude oil export ban were lifted.
(Click image to enlarge)
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