The reality is that lifting the oil export ban will result in large increases in fracking for oil in the U.S.
Lifting the oil export ban would only perpetuate the problem of over-production. That is no solution to low oil prices, lost jobs or lower oil-related spending.
As the oil industry cries poverty due to low oil prices in an effort to justify its attempts to lift all restrictions on exporting crude oil produced in the U.S., it is helpful to remember that this is an industry that was demanding tax breaks for oil production even when, in 2013, the top 5 companies made a combined $93 billion in profits.
There is a case regarding market efficiency for overturning America’s oil export ban, but this is NOT the one the industry is using in its public relations campaign. That’s because increased efficiency in the world oil market would actually make the country’s oil supply more vulnerable to events abroad.
As President Obama prepares to deliver his State of the Union address, he must explain why his administration’s policies on clean energy, climate and environmental goals have not lived up to his own standards.