Full Title: Congressional Energy Export Reform Should Not Be Distracted by Questionable Subsidy
Author(s): Brian Slattery
Publisher(s): The Heritage Foundation
Publication Date: October 1, 2015
Full Text: Download Resource
Description (excerpt):
Congress is striving to lift a ban on U.S. oil exports that will strengthen the economy. However, this effort is being sidetracked by a subsidy hike for the Maritime Security Fleet, despite no explanation of how these ships relate to energy policy, no explanation of why an increase in the subsidy is necessary, and no justification for the fleet’s continued existence.
The Maritime Security Fleet is administered by the Maritime Security Program (MSP) through the Maritime Administration (MARAD) within the U.S. Department of Transportation. It consists of 60 ocean-going, U.S.-flagged commercial vessels. The MSP’s declared purpose is to sail “a fleet of active, commercially viable, militarily useful, privately owned vessels to meet national defense and other security requirements.”[1] It currently costs hundreds of millions of taxpayer dollars to sustain this fleet.[2] The MSP needs this subsidy because it cannot otherwise compete with the more cost-effective foreign-flagged market.