Essay on Xavier: Petroleum and Ken Cohen Posted

Submitted By xaviextreme
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A tale of two studies on exports and the economy
Posted: June 4, 2014 by Ken Cohen
Posted: June 4, 2014 by Ken Cohen
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In unveiling what it called its “All-of-the-Above” energy strategy last week, the White House highlighted a quote from President Obama saying, “We can’t have an energy strategy that traps us in the past.”
I wholeheartedly agree.
In particular, our energy policies must no longer continue to be anchored in the 1970s – a period defined by grave fears about resource scarcity – at a time when the shale revolution currently is providing the American people with energy abundance.
Even the White House acknowledges “the U.S. energy sector is undergoing a profound transformation.”
One smart way to adjust to this transformation would be to rescind the moratorium on crude oil exports that was put in place in 1975 during an era of oil embargoes, rationing, and long lines at service stations.
Yet until Washington takes action to do so, our energy sector will continue to be constrained, and the economy will continue to be missing out on the full benefits of the shale revolution.
Exactly how significant those benefits may be was spelled out in another report that was issued the same day as the president’s.
That study – from energy consultancy IHS – makes abundantly clear that failure to lift the crude oil export ban will prove very costly to American consumers. IHS finds that lifting the ban will:
Lead to nearly $750 billion in