Trade Wars

Dem’s proposal to ban oil exports would devastate U.S. energy industry and economy – Experts

SAN ANTONIO (UrduPoint News / Sputnik – November 16, 2021) A ban on U.S. oil exports would devastate the U.S. energy industry and result in the loss of millions of U.S. jobs due to the spillover effect, said industry experts at Sputnik.

In a letter to President Joe Biden last week, several Senate Democrats called for a ban on US oil exports as a way to lower gasoline prices for consumers in the United States.

“It would be devastating for our country if he (Biden) did something like this,” Scott Shields, partner of the New Energy Development Company, said on the sidelines of the Mexican-US Natural Gas Forum. “Just the spillover effect associated with cutting oil exports and then LNG (liquefied natural gas) is the livelihood of millions of people in this country.”

Shields, a consultant with managerial experience at Exxon and Enron, also said the ban on U.S. oil exports would stifle U.S. economic growth and significantly reduce the energy sector.

Eduardo Prud’homme, consultant and former official with the Mexican Energy Regulatory Commission CRE, said a ban on US oil exports also goes against the value of a free market in the United States .

“I think the United States is for me a champion of the free market, so that would go against the principle of free markets, so I think if we want to see a future with regions and trade wars, well , at the end of the day, we have to stand up for the principles, “said Prud’homme. “I think North America should be a free market region, we have to be based on that principle, it’s part of democracy.”

As gasoline prices rise in the United States, Biden has tried unsuccessfully to convince the Organization of the Petroleum Exporting Countries (OPEC) to increase oil production. Meanwhile, he refuses to tap into the United States’ strategic oil reserve, saying it would have minimal effect on prices at the pump.

The national average for a gallon of regular gasoline in the United States is $ 3.41, according to the American Automobile Association. The highest national average on record for regular gasoline was $ 4.11 per gallon in July 2008, according to AAA data.

Almost two years since the start of the pandemic, pent-up demand created an oil supply crisis that spiked crude prices to less than $ 49 a barrel late last year to over $ 80 right now, according to the West Texas Intermediate benchmark.