Key facts
- U.S. Interior Secretary Doug Burgum said a ban on oil or fuel exports would be unlikely to lower energy prices for consumers.
- Burgum stated that an export ban could lead to retaliatory actions from other countries.
- The Trump administration is nearing approval for permits to mine the deep sea for critical minerals.
- Polymetallic nodules found on the seabed contain minerals essential for electric vehicles, weapons, and electronics.
- Burgum said the U.S. needs diverse, secure, and affordable supplies of critical minerals.
- China has limited exports of critical minerals in the past 18 months, increasing pressure on Washington to boost domestic mining.
U.S. Interior Secretary Doug Burgum said on Monday that a ban on U.S. oil or fuel exports would be unlikely to help lower energy prices for consumers. Speaking to reporters at a G20 meeting on energy in Houston, Burgum indicated that such a measure would not be effective in reducing prices.
Burgum, an appointee of President Donald Trump, explained that imposing bans on oil, gasoline, or diesel exports could provoke retaliatory actions from other nations. This, he warned, could negatively impact consumers in states like California, which relies partly on energy imports. "We stop exporting product, and then somebody says, 'We're not going to export to California,'" Burgum stated.
He further pointed out that California already experiences the highest gas and diesel prices in the country due to its specific policies, and an export ban would only exacerbate this situation. The Trump administration is reportedly exploring options to reduce diesel prices, which have recently reached record highs, ahead of the midterm elections.
Separately, the Trump administration signaled it is nearing approval for permits to mine the deep sea for critical minerals. Burgum said that permits could come within months as the administration pursues a strategy of "energy addition" to expand supply chains. The specter of seabed mining being allowed to commence has alarmed many environmentalists due to concern it could cause irreversible biodiversity loss. Polymetallic nodules found on the Pacific Ocean floor contain minerals essential for electric vehicles, weapons, and electronics. Burgum stated that the U.S. needs diverse, secure, and affordable supplies of critical minerals, especially as China has limited exports of these materials.