In a recent response to President Biden's call for increased oil refining capacity, Exxon Mobil Corp. responded by suggesting that, among other regulatory changes, waiving Jones Act vessel requirements could help relieve gas supply constraints and ultimately lower prices. Exxon Mobil has a point. The Jones Act may have long outlived its usefulness and could be imposing costs on what US consumers pay for energy that are far greater than its benefits. Congress adopted the Jones Act, Section 27 of the Merchant Marine Act of 1920, after World War I to ensure that the U.S. would have a robust merchant marine to support military logistics in a future war. To do so, the act created a captive market for the US. merchant marine and shipbuilders, mandating that shipments between domestic ports use only vessels built, flagged and registered in the U.S. that are crewed 75% by American sailors.
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