For years people have been told to expect a dismal energy future. But because of rapid market innovation Americans now can look forward to an abundant energy future. The U.S. could even become a leading exporter—if Washington gets out of the way.
An energy revolution currently is underway, with increasing supplies and falling prices. Even more could be done if Washington expanded access to federal lands and waters and freed producers to make best use of what they extract.
Arbitrary restrictions bedevil energy exports. For instance, natural gas licenses are granted automatically for nations with free trade agreements—in this case Canada and Mexico—but otherwise the review process is lengthy and approval is rare. Last year Energy Secretary Ernest Moniz announced that he was delaying decisions on a score of applications for political reasons even though the department had already concluded that such exports would benefit the U.S. economy.
The ban on oil is even tougher, with only small amounts being shipped to Canada. Few licenses have been issued under the law’s “national interest” exception, and none since 2000.
As I point out in my latest Forbes online column:
Read the rest of this post →Forbidding petroleum exports does not make additional oil available to Americans. Rather, the ban prevents energy companies from saving money. For instance, it would be cheaper to sell Alaskan crude to Asia and purchase more oil from Latin America.