ExxonMobil is pushing back against reductions of U.S. fuel exports urged by the Biden administration in August, arguing that restricting shipments would further squeeze global supplies and lift pump prices at home.
As The Wall Street Journal reports, ExxonMobil told the Energy Department last week that the oil industry should not slow fuel shipments in favor of putting more in storage tanks.
Easing exports wouldn’t fill tanks in the Northeast—a region where U.S. officials say oil companies need to send more supplies—and instead would create a glut in the Gulf Coast that would lead refineries to cut output, according to the letter, which was signed by ExxonMobil Chief Executive Darren Woods.
“Continuing current Gulf Coast exports is essential to efficiently rebalance markets—particularly with diverted Russian supplies,” Woods wrote. “Reducing global supply by limiting U.S. exports to build region-specific inventory will only aggravate the global supply shortfall.”
An Energy Department spokesperson says parts of the country have oil and gas supply levels that are unacceptably at or near five-year lows during hurricane season.
“The administration has impressed upon the oil and gas industry that it must do more to ensure fair prices and adequate supply for all Americans, while meeting the needs of our allies,” the spokesperson says. Read the full story (subscription).