Good Example Of Research Paper On US Economic Advantages On The Crude Oil Export Ban Being Lifted

Currently, the United States has embraced innovative techniques in the domestic crude oil production, which involves hydraulic fracturing and horizontal drilling. As a result, this has significantly induced the increase of the production of the crude oil in the country forcing the country to reduce oil imports and lift the 40 years ban on oil export. It is anticipated that lifting of the ban on oil export from the U.S. market will attract several economic benefits to the country. Therefore, this paper provides an insight on some of the main economic benefits that are associated with lifting the ban on crude oil in the U.S. market.
According to Senator Murkowski, the lift will encourage free trade of oil and subsequently reduce the pressure on oil prices (Dillon and Tadeo 1). The reduced prices will encourage production expansion and hence increase the level of employment, enhance economic activities, and create the competitive advantage of the country. Studies have indicated that lifting the export ban will reduce the pressure on oil prices in the US market. This is because; the country has to lower her prices of crude oil in order to remain competitive in the global market that has relatively lower prices of crude oil. As a result, this will induce a decrease in oil prices in the local market.
Another advantage of lifting ban on the Export of crude oil in the United States includes economic growth and an increase in the economic activities. For instance, when the ban is lifted, the refining sector is anticipated to increasing production of crude oil in order to increase demand created by exports. As a result, this will attract new investors in the sectors, which will create more revenue for the U.S. government as well as creating employment and facilitate economic development. For instance, it is expected that the capital investment for machinery will increase to around $7 billion by 2020 and mining and construction machinery will increase by $3.6 billion. Employment in mining, construction, and related professional services is anticipated to increase up to 43,000, 216,000, and 148,000 respectively.
Because of the refinery sector expansion subsequent to the lift of crude oil ban, the United States is anticipated to leap several macroeconomic benefits. For instance, the GDP is anticipated to grow by 0.93 percent, which can be translate into an approximate to $165 billion by the end of 2021. In addition, the real household income is expected to increase by $2,000 per individual in 2025, which is translated into 2.2 percent increase.
In addition, lifting the ban will enhance greater stability that will mitigate the global market volatility, which will reduce the prices in the petroleum product prices. Therefore, this will reduce the price volatility of the products related to the crude oil, and this will reflect energy security benefits to the consumers in the United States market (Medlock III 51). As a result, the consumption pattern in the country is expected to change where the consumers will consume more lower-priced petroleum products. The increase in the aggregate consumption in the country will increase the gross domestic product, and hence economic growth.
In conclusion, it is evident that lifting the ban on crude oil will attract several and significant economic advantages. The lift will help to reduce the crude oil prices protect and create employment, and inducing economic stimuli in all states in the country. In addition, the lift is anticipated to increase the government revenue and strengthen the U.S. national security and the influence in the world.

Works Cited

Dillon, Robert, and Michael Tadeo. Sen. Murkowski: Ending Oil Export Ban holds Economic, Geopolitical Benefits for U.S. Alaska: United State Committee on Energy and Natural Resources, 2015. Web.
Medlock III, Kenneth. "To Lift or Not to Lift? The US Crude Oil Export Ban: Implications for Price and Energy Security." James A. Baker Institute for Public Policy (2015): 1-68. Web. 24 Apr. 2015. <http://bakerinstitute.org/media/files/research_document/d2d6536a/CES-CrudeOilExports-Medlock-032715.pdf>.