Posted April 7, 2015
For Energy Security, Export Oil
BloombergView: It's a pernicious bit of American mythology that is used to justify the law against domestic oil producers selling their crude overseas: The U.S. needs "energy independence." Never mind that the law actually undermines this goal, or that the goal itself is practically impossible to achieve. It's the wrong goal. What the U.S. should be striving for is not independence, but energy security.
The story behind the myth goes something like this: If the U.S. doesn't hoard all its oil, then it can't hope to attain energy independence. And until it does that, it has to keep buying oil from politically unstable or unfriendly regimes. Therefore U.S. consumers must tolerate volatile prices for gasoline and heating oil.
The tale is false, but it brushes against one truth: When instability in other countries affects the price of oil, the U.S. economy can suffer. Just last month, the price jumped almost 5 percent when Saudi bombs began to fall on rebel targets in Yemen. Such unpredictable spikes make it difficult for many U.S. businesses to plan ahead, and this means less investment and less hiring.
The way to lessen U.S. vulnerability, however, is not to withdraw from the world oil market altogether (if that were even possible). It's to sell more of the U.S.'s expanding crude stores abroad. As a bigger player, the U.S. would have a greater influence on price.
Read more: http://bv.ms/1CigfIq
More industry news:
- EIA: U.S. Remains World’s Largest Producer of Petroleum, Natural Gas Hydrocarbons in 2014: http://1.usa.gov/1PfWDOU
- Lawrence Summers Comes Out Swinging for Keystone XL: http://bit.ly/1CRy18T
- Video: Producing Energy and Oranges: http://bit.ly/1IG2XtY
- Swaps May Be a Way Around U.S. Crude Export Impasse, Forum Told: http://bit.ly/1CavBzq
- PA County’s Commissioners Turn to Natural Gas Fees to Restore Aging Bridges: http://bit.ly/1CR7OHn
ABOUT THE AUTHOR
Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Mark also was a reporter, copy editor and sports editor. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela live in Occoquan, Va., where they enjoy their four grandchildren.