DALLAS— President Obama’s most important economic legacy has come at the end of his eight-year term. By ending the 40-year ban on U.S. crude oil exports and permitting the export of liquefied natural gas (LNG), the U.S. is on its way to becoming an energy exporting powerhouse, says a new Institute for Policy Innovation (IPI) publication.
In “Exporting Oil and Gas Will Import Economic Growth,” IPI resident scholar Dr. Merrill Matthews reports that in the first half of 2016, about 500,000 barrels of crude oil were exported to 16 countries, was well as some 50 billion cubic feet of natural gas.
Matthews explains the economic and geopolitical benefits of the U.S. oil and gas export business, emphasizing how it:
- Jumpstarts economic growth;
- Lowers the U.S. trade deficit;
- Stabilizes prices, supplies, and jobs through demand from international markets;
- Enhances the economic efficiency of oil processing and refining; and
- Helps maintain geopolitical stability.
“Ending the oil export ban and permitting LNG terminals to export natural gas will encourage energy companies to ramp up production because new markets are now available to them,” said Matthews.
According to the U.S. Energy Information Administration, the U.S. has become the largest oil and gas producer in the world, thanks to innovative drilling techniques.
“Several major oil and gas exporting countries use energy as a hammer to discourage opposition to their political mischief,” said Matthews. “Our allies need an alternative supply and the U.S. will soon be able to provide it.”
“The fossil fuel industry arguably kept the U.S. economy out of recession for the past eight years and, with export markets now open, could help the country return to 3 or 4 percent GDP growth,” said Matthews.
The Institute for Policy Innovation (IPI) is an independent, nonprofit public policy organization based in Dallas. Copies of “Exporting Oil and Gas Will Import Economic Growth" are available at www.IPI.org. IPI resident scholar Dr. Merrill Matthews is available for interview by contacting Erin Humiston at (972) 874-5139, or erin@ipi.org.