Posted on 10/05/2022 5:35:38 AM PDT by Red Badger
The American Petroleum Institute (API) and American Fuel and Petrochemical Manufacturers (AFPM), two major groups that represent the oil industry, criticized the Biden administration’s plan to ban or restrict the exports of refined petroleum products, according to a letter they sent to Energy Secretary Jennifer Granholm on Tuesday.
API CEO Mike Sommers and AFPM CEO Chet Thompson urged Granholm not to ban or restrict or ban U.S. exports of refined petroleum products to avoid disrupting the U.S. economy and global market, according to the letter. The CEOs argued that restricting exports would curb production and supply which would exacerbate the fuel shortages that the Biden administration is attempting to address. (RELATED: Biden Does Damage Control As Rising Gas Prices Threaten Democrats’ Midterm Hopes)
“Banning or limiting the export of refined products would likely decrease inventory levels, reduce domestic refining capacity, put upward pressure on consumer fuel prices, and alienate U.S. allies during a time of war,” Sommers and Thompson wrote.
The CEOs also wrote that they were seriously concerned by the administration’s indications that it would move to cut oil companies’ exports as Granholm previously said that the U.S. would not impose limits on overseas fuel sales.
“Restricting these exports would cut off important supply from the international market, putting upward pressure on prices … undermining U.S. allies and creating negative global economic consequences,” the CEOs noted.
WASHINGTON, DC – SEPTEMBER 30: U.S. President Joe Biden and first lady Jill Biden host a reception to celebrate Hispanic Heritage Month in the East Room of the White House on September 30, 2022 in Washington, DC. (Photo by Chip Somodevilla/Getty Images)
Both API and AFPM as well as top fuel refiners met with Granholm and White Officials on Sept. 30 to discuss market imbalances and our industry’s efforts to supply enough fuel to consumers, according to an AFPM and API joint statement.
“The administration continues to govern with contradictory energy policies and rhetoric,” both groups said in the statement.
Granholm threatened in August to use “emergency measures” to compel domestic refiners to cut exports as domestic stockpiles of refined products were nearing record lows in regions like New England. Crude oil stocks also fell by 200,000 barrels and gasoline inventories declined by 2.4 million barrels during the week that ended on Sept. 23, according to Energy Information Administration data released on Sept. 28.
“Moreover, banning exports of refined petroleum products could lead to unpredictable results and potentially disparate impacts across regions as refineries adjust to the revised trade flows,” the letter reads.
API is a trade association that represents oil and gas companies including Exxon, Chevron and Shell USA, according to its website. AFPM is a trade group that represents businesses that produce petroleum products like gasoline, diesel and jet fuel.
API and AFPM did not immediately respond to the Daily Caller News Foundation’s request for comment.
What happens when both sides cheer the cheating that went on in Atlanta, Detroit, Phoenix, Milwaukee, and Philadelphia and elsewhere like that on Election Night 2020.
OPEC and Russia to cut oil production.
Wait, I know it’s economic interventionalism, but in times like this, I actually think I’m for this idea. I’m definitely not in the tall weeds on any details on this, in times like this with shortages and opec threatening to reduce production, why should we be exporting our energy?
It would seem very nationalistic to me, if it weren’t for the fact that the Biden admin is doing everything they can to obstruct domestic production too
I’m not aware of the API lifting a finger to help Trump in 2020. They made their bed. I hope they enjoy it.
I’m not aware of the API lifting a finger to help Trump in 2020. They made their bed. I hope they enjoy it.
~~~
Energy prices were low under Trump.
They like the current climate much better. They just don’t want Biden telling them where they can sell their product
NG can still be exported.
“Banning or limiting the export of refined products would likely decrease inventory levels, reduce domestic refining capacity, put upward pressure on consumer fuel prices, and alienate U.S. allies during a time of war,”
I don’t see a problem with any of those effects, especially alienating U.S. allies. We already give away too much of our treasure to other countries.
He wanted a legacy of producing an electric revolution
instead, his legacy will demonstrate:" Non compos mentis " in national leadership,
and will foment rebellion.
The President does not actually have the authority to stop refined product exports. He does have authority to prohibit Crude exports under the Omnibus Bill of 2015.
Of course, this lawless POC will do it and get coverage from the press and from the Democrat Court System.
There's your problem...right there.
Isn’t Biden exporting US strategic petroleum reserve?
No, they are not.
What they are is EVIL.
Note to trade associations: Talk is cheap.
The number of clueless people on this thread is amazing.
If banning or limiting U.S. exports of any product or service translates into lower prices for those things for Americans - I'm all for it!!!
“If banning or limiting U.S. exports of any product or service translates into lower prices for those things for Americans - I’m all for it!!!”
That is the missed point. It won’t lower prices, it will raise them.
"It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise." - Investopedia.
If we limit or ban export of our domestic gas and oil, supply should increase and demand decrease - as a result of cutting out the global market. If this is true, banning export of our domestic gas and oil could very well reduce prices for Americans.
I believe U.S. oil companies are interested in profits even if it means higher cost for Americans. So, when they balk, I doubt it's for any other reason than that they want to earn more money at our expense - IMHO.
“I believe U.S. oil companies are interested in profits even if it means higher cost for Americans. So, when they balk, I doubt it’s for any other reason than that they want to earn more money at our expense - IMHO.”
This may be true.
However, the way to get lower costs isn’t going to happen with the way the Biden administration is treating the energy sector. In fact their approach is only going to make matters worse.
The way to lower cost is an increase in production & refinery capacity.
This will take both time and investment, so it won’t happen overnight.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.