Banning diesel exports won't save the GOP in the Midwest
Farm-state Republicans have coalesced around a new winning message for November: a federal ban on American companies exporting diesel around the world. Resurrecting the 1970s’ failed energy policies would be a disaster and replicate a COVID-19-level shock to global supply chains.
TL;DR
- Farm-state Republicans are advocating for a federal ban on U.S. diesel exports as a winning message for the November elections.
- History shows that 1970s-era energy policies, including export controls and price caps, failed to solve energy crises and worsened shortages.
- The U.S. produces more diesel than it consumes, exporting the surplus; an export ban would not necessarily lower domestic prices.
- An export ban could lead to domestic shortages, price spikes, and an oversupply of diesel where it's not needed.
- Removing U.S. diesel from the global market would impact supply chains, potentially leading refineries to produce more diesel at the expense of other fuels.
- Such a ban could strengthen Russia by forcing European nations to rely on Russian energy.
- An export ban could trigger a trade war with Mexico, harming American farmers.
- The proposed policy is unlikely to improve Republican electoral chances in the Midwest and may worsen them.