
Catalyst with Shayle Kann
How an obscure, 100-year old law is disrupting U.S. energy
Apr 18, 2024
Exploring how the Jones Act impacts energy prices and offshore wind deployment in the U.S. Discussing the high costs of building ships in the U.S. compared to other countries. Analyzing why it's cheaper to ship U.S. oil and gas abroad than domestically. Highlighting the shift to using trucks and trains for domestic shipping. Considering potential changes to the Jones Act and its history.
40:36
AI Summary
Highlights
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The Jones Act significantly increases the costs and time required for deploying offshore wind turbines, impacting the growth of the U.S. offshore wind industry.
- The Jones Act distorts the fuel supply chain in the U.S., leading to situations where certain regions import oil from foreign countries due to prohibitive U.S. shipping costs.
Deep dives
The History and Purpose of the Jones Act
The Jones Act, formally Section 27 of the Merchant Marine Act of 1920, mandates that vessels transporting goods in the U.S. must meet specific conditions like being flagged in the U.S. and built in a U.S. shipyard. Initially aimed at ensuring a reliable U.S. shipping fleet for wartime needs, the Act has led to exorbitant costs for domestically built ships, with U.S. vessels now up to five times more expensive than those built abroad.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.