Key facts
- U.S. crude oil exports have risen nearly 30% to 3.5 million barrels per day.
- Refined product exports have increased 20% to over 8 million barrels per day.
- Industry groups warn export bans would reduce U.S. production and raise domestic fuel prices.
- Critics suggest export limits could curb price gouging and fund relief for consumers.
The U.S. oil industry is actively lobbying against potential restrictions on crude oil and refined product exports, a move that could be initiated by Donald Trump. Industry representatives argue that limiting exports would paradoxically lead to higher domestic fuel prices and reduced U.S. production.
Recent data shows a significant increase in U.S. energy exports, with crude oil shipments up nearly 30% year-over-year to 3.5 million barrels per day and refined products like gasoline and diesel up 20% to over 8 million barrels per day. Critics of these exports contend that sending these cargoes abroad drives up prices for American consumers.
However, the oil and gas industry counters that such export bans would harm the domestic market by reducing production. A refining industry lobbyist stated that cutting off international markets would result in supply squeezes and increased upward pressure on domestic prices, the opposite of what the White House should desire. Chet Thompson, president and CEO of the American Fuel & Petrochemical Manufacturers, echoed this sentiment, warning that export controls would force U.S. refiners to produce less gasoline due to the loss of outlets for surplus fuels.
Meanwhile, liberal and progressive groups have voiced support for limiting fossil fuel exports, viewing it as an opportunity to curb industry profits and potentially fund relief for working families. Tyson Slocum, energy program director at Public Citizen, suggested that President Trump's stance on oil companies making excessive profits could lead to support for a Windfall Profits Tax and limits on exports.