‘Let’s push prices down’: Wright asks oil industry to curb exports
Por Kelsey Tamborrino and Mike Soraghan — POLITICO – TOP Stories
ALLENTOWN, Pennsylvania — Energy Secretary Chris Wright is calling on the oil industry to voluntarily reduce diesel fuel exports in a bid to bring down prices domestically ahead of midterm elections.
The former oil industry executive’s pitch in Pennsylvania comes a day after POLITICO reported the White House was preparing plans to impose a 90-day halt on exports of the fuel, which triggered an outcry in the U.S. oil industry and showed the pressure President Donald Trump’s administration is under from voters to address affordability issues.
Wright said on Wednesday he’s been talking to energy executives about that idea — and potentially other options — to reverse the spike in prices that have lifted the fuel to record highs because of the shortages caused by the administration’s war against Iran and Ukraine’s attacks on Russia’s refineries.
“Reduce a little bit your exports overseas,” Wright, speaking to reporters at an event here, said he told refining company executives. “Put some more diesel into the United States. Let’s grow our diesel inventories. Let’s push prices down.”
But energy executives have expressed their concerns that coordinating such voluntary reductions among companies could violate federal antitrust laws.
“It’s against the law,” said a person working with the energy executives who are talking to White House officials and granted anonymity to preserve relationships. “That creates a problem for them.”
The administration is still exploring another option, Wright told reporters, but he declined to offer any details about what that would entail.
“There’s another one, too, but I can’t talk about it yet,” Wright told reporters. “Because we’re still working [on] whether we can do it or not.”
Wright’s message comes after the administration pitched oil executives on its plans to impose a possible 90-day ban on exports to drive down domestic prices. That caused a widespread outcry from the industry against the idea, warning such a move would only bring a short-term decline in prices that would be followed by a longer-term disruption in refinery output as companies adjusted to the loss of a major market.
News that the administration was working on a plan for a ban caused “lots of pushback from industry, opened the door for some watered-down version of a ban,” said one industry executive familiar with the conversations. “But Wright’s ‘voluntary’ export ban/limitation has no details.”
Diesel prices have soared across the globe, and American refiners have been exporting record amounts of diesel since the Iran war started. That has some farm-state lawmakers saying that more of the fuel should be staying in the United States to ease the financial burden on farmers struggling to fill up the tanks in their tractors and combines in preparation for harvest.
The United States is the world’s largest shipper of diesel, and exports have reached record highs this year, according to ClearView Energy. U.S. Energy Information Administration data shows that exports of U.S. refined products are up more than 12% in the months since the Iran war started.
Commercial inventories of diesel and similar fuels in the United States are 12% below the five-year average.
Department of Energy officials say Wright is focused on lowering energy costs.
“The Trump administration, including Secretary Wright, continue to work closely together as they consider a variety of options to help lower energy costs for the American people,” said DOE spokesperson Ben Dietderich. “Ultimately, President Trump will make the final decisions.”
Meredith Lee Hill, Kelsey Brugger and Ben Lefebvre contributed to this report.
Fonte: POLITICO – TOP Stories