How an obscure, 100-year old law is disrupting U.S. energy

What this episode covers

Colin Grabow, a research fellow at the Cato Institute, explains how the Jones Act, a 1920 maritime law requiring domestic cargo to be shipped on U.S.-built, owned, and crewed vessels, distorts U.S. energy markets. He details how this creates a vicious cycle of uncompetitive American shipbuilding, forcing energy products like LNG and oil to be shipped internationally rather than domestically, as seen with Puerto Rico importing from Nigeria while U.S. LNG exports to Spain. The episode covers the law's history, its economic impacts on fuel supply and offshore wind deployment, and the political dynamics that prevent its repeal despite its high costs.