US oil ban lifted?
The US has had a ban on oil exports for over 40 years. This ban could be lifted after a new study came out saying that the US is producing more oil than Saudi Arabia for the first time in decades. This would continue to push oil prices down for Americans who pay at the pump. Environmentalists are against this because they say this will increase the chances of an oil spill happening close to home. AAA has yet to take a position on if America should lift the band. This debate is expected to hit the floors of Washington in the next coming months.
What do you think, should America lift the band?
http://money.cnn.com/2014/12/12/news/economy/oil-export-ban/index.html?iid=SF_E_Lead
This article shows how there's always a dilemma when handling economic issues. Months ago Americans complained about high gas prices. The country potentially has a solution but now the problem of an oil spill has occurred. With that being said, making decisions and knowing what's best for the economy is a difficult job.
ReplyDeleteI think that we should keep the band. If we lift the band, that would allow for more oil to leave the country thus increases the prices by lowering the supply here. The exportation of oil will increase the risks of an environmental hazard. But in the meantime, let's see how far the prices fall and if it'll last.
ReplyDeletePersonally, I would like to see the US put as much of the excess oil as we can into a reserve and become as self-sufficient as possible in terms of our oil needs. Because of how dependent our nation’s productivity relies on oil, I am not comfortable with the idea of being in a situation where we almost rely solely on other countries to acquire it. Especially if the oil would be coming from a foreign country experiencing political instability. I would hate to see us export it all and then need it in the future.
ReplyDeleteI think that we should keep the band. If an oil spill does happen, it could obviously have disastrous consequences, both on the economy and on the environment. On the other hand, if we do not start exporting oil then prices will keep dropping here, which is good for the consumers but not for the producers. This also impacts the prices or airlines, so there are a lot of companies that are being impacted by the increased supply in oil.
ReplyDeleteI'm unsure about lifting the ban. On one hand, I agree with Kevin. Exporting all of our oil without keeping a reserve may have a negative impact in the future. Middle Eastern nations are in complete disarray and relying on them for much of anything isn't a place I believe is safe for us to be in. On the other hand, I agree with Maeve. If we keep increasing our supply, prices will continue to drop, creating a huge decrease in profit for not only oil companies, but also smaller entities. I think if we found a balance between the two, like the government buying oil and keeping it in reserves so that while the supply is increasing prices are not falling. If that were to occur we'd be safe from unhealthy reliance on the middle east but also preserve the health of the companies who rely on profit from oil.
ReplyDeleteI have to agree with Kevin. While oil supply in the market is currently high (driving the price down) I am worried about the future. Not only am I worried about relying on unstable Middle-Eastern countries but exporting our oil will only deplete the world's supply faster which environmentalists argue is a major problem. They estimate that the world's supply will only last 40 more years so sitting on our oil right now seems like a good idea.
ReplyDeleteI can see both sides of the argument. I agree with Anna. I think a happy-medium between the two would be the best method. I think some exporting should be allowed but I think that exporting should be limited.
ReplyDelete