GAO Report on Crude Oil Exports

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October 23, 2014

    The Government Accountability Office (GAO) released a study on October 20, 2014 that discussed the changes in the crude oil markets.  The study found that eliminating crude oil export restrictions would “likely increase domestic crude oil prices but decrease consumer fuel prices.”  The price of the crude oil would increase $2 to $8 per barrel, which would reflect international rates.  Removing the restrictions would also increase crude oil production in the US between 130,000 to 3.3 million barrels a day between 2015 and 2035.  Additionally, removing the barriers would benefit the US economy in terms of “employment, investment, public revenue, and trade,” while also “reducing the U.S. trade deficit.”  However the study does warn that there could be environmental repercussions, such as increasing emissions and contaminating water sources.  The GAO cautions that removing the barriers could impact the “ideal size” of the Strategic Petroleum Reserve, since the US is required to keep “90 days of net imports.”  However, the change in regulation would benefit the US economy by eventually “decreas[ing] net imports.”

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