Boom to Bust? How Export Restrictions Imperil America’s Oil and Gas Bonanza

Policy Forum
February 10, 2014 11:30AM
Hayek Auditorium
Featuring James Bacchus, Former WTO Appellate Body Jurist and Former U.S. Congressman; Scott Lincicome, Cato Institute Adjunct Scholar and International Trade Attorney; and Mark Perry, Professor of Economics, University of Michigan–Flint, and American Enterprise Institute Scholar; moderated by Daniel Ikenson, Director, Herbert A. Stiefel Center for Trade Policy Studies, Cato Institute.

A once-in-a-generation supply shock is transforming global energy markets, lowering crude oil and natural gas prices, and quickly making the United States the world’s largest producer of oil and gas. But energy politics threatens to short-circuit this American economic boom. Of immediate concern are federal regulations — in particular, discretionary export-licensing systems for natural gas and crude oil — that were implemented during the 1970s, an era of energy scarcity. By restricting exports and subjecting approvals to the whims of politicians, the current licensing systems distort energy prices and deter investment and employment in these promising sectors of the U.S. economy. They also irritate global trading partners, likely violate U.S. trade treaty obligations, and undermine other U.S. policy objectives. Ernest Moniz, President Obama’s energy secretary, recently stated that these export restrictions are deserving of “some new analysis and examination in the context of… an energy world that is no longer like the 1970s.” Please join us at the Cato Institute for our examination of these issues.