Ed Crooks of Wood Mackenzie explains how the Jones Act exacerbates diesel shortages in the U.S.
- Diesel oil stock levels are at historic lows in certain regional hubs, including New York City, due in large part to a lack of refinery capacity.
- The Jones Act, which requires goods being shipped between two U.S. ports to be shipped on a U.S. made and operated boat, slows down the refilling of these hubs because there are no Jones Act-compliant diesel ships.
- The Jones Act also artificially inflates the cost of natural gas and crude oil which makes home heating more expensive.
- Lawmakers should repeal the Jones Act to reduce costs for consumers and bolster American economic competitiveness.
“Wood Mackenzie’s Williams argues that there is a better way the administration could help relieve the diesel shortage in New York Harbor and put downward pressure on prices. ‘The quickest way to ease the situation would be to waive the Jones Act for a month or two,’ he says. ‘If we could move more barrels around the US by sea, that would make a real difference.'”
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