Energy experts have slammed a group of Senate Democrats who wrote to President Biden requesting him to limit US crude oil exports, which they claim will cut gas costs for ordinary Americans.In the letter, 11 Democrats, including Senator Elizabeth Warren, warned Biden that the “option of domestic leaseholders and producers to continue exporting US petroleum” threatens to “push already record prices much higher” and urged him to “limit crude oil exports.”
“The economics are quite straightforward. And if the government suggests that enforcing a prohibition on US crude oil exports lowers US domestic crude oil prices and hence, for example, lowers US gasoline prices that are sheer nonsense; that is not the consequence.”“Implementing a crude oil export prohibition has little effect,” Ingham added. “And it’s likely to raise prices rather than cut them.”
Karr went on to say that the key to addressing the present gas price situation is to get out of the way of US oil and gas producers and enable output, which was significantly reduced during the epidemic, to match demand when the pandemic ends.
“The solution is simple to get out of the way of US oil and gas producers while they do what they do best. Allow them to go to work “Ingham elaborated.”Remove as much ambiguity as possible from the legislative, regulatory, and economic environments, and allow them to go back to the job of quickly increasing domestic crude oil production and energy output in the United States.”In the letter, Democrats asked Biden to release oil from the Strategic Petroleum Reserve and to press OPEC to produce more oil.