Thursday, April 25, 2013

How can Congress Reduce the Cost of Gas?

For starters consider modify the Merchant Marine Act of 1920.

The Merchant Marine Act of 1920 is a United States federal statute that regulates maritime commerce in U.S. waters and between U.S. ports. It's better known as the Jones Act and requires that all goods transported by water between U.S. ports be carried in U.S. flaged ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens or U.S. permanent residents. The purpose of the law is to support the U.S. maritime industry.

It's clear that the last 93 years of "protecting" U.S. maritime industry hasn't worked.  At the very least Congress should modify the Merchant Marine Act to allow foreign shipping companies to fill in when there isn't a bonafide U.S. ship available.

What will this do?  It would allow oil companies to ship oil from the Gulf States to the East Coast verses West Africa.  Big deal?  You bet and it saves big money.  Right now there aren't enough U.S. ships to transport oil from the Gulf States so East Coast refineries are forced to buy oversea crude which is more expensive and in some cases ends up supporting governments that aren't supportive of  the United States.