Higher US Oil Output Won't Protect Consumers, CBO Says

Law360, New York (May 10, 2012, 4:45 PM EDT) -- Energy policies that encourage increased domestic oil production are unlikely to protect consumers from price volatility in the global oil market, according to a Democratic-commissioned report on energy security released Wednesday by the Congressional Budget Office.

Even if the United States became a net oil exporter and increased production pushed down global oil prices overall, consumers would remain vulnerable to price spikes resulting from foreign supply disruptions, the CBO found.

The report, requested by Sen. Jeff Bingaman, D-N.M., deals a counterpunch to Republican lawmakers, who have...
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