Oil industry leaders urge Biden to take off export ban

Executives of the American Petroleum Institute and American Fuel and Petrochemical Manufacturers wrote a letter to Energy Secretary Jennifer Granholm on Tuesday, urging the Biden administration to take an oil export ban off the table because of high energy prices.

Industry leaders wrote in a letter that banning or restricting 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.

Granholm sent a letter to U.S. refining companies in August, instructing them to focus on building inventories in the United States rather than selling down current stocks and increasing exports. She said last month that restrictions are not being considered at this time, but oil industry leaders wrote in Tuesday's letter that recent discussions with officials raised concerns that a ban could be implemented.

The Department of Energy did not respond to a request for comment on Tuesday.

President Biden blames oil companies for this year's surge in energy prices, which has been partially driven by Russian President Vladimir Putin's invasion of Ukraine. Oil prices had been steadily rising long before that invasion, back to Biden's first days in office when he used executive orders to cancel the Keystone XL pipeline and paused the Keystone XL pipeline.

At a meeting with the White House Competition Council last month, Biden said that oil and gas companies are still making record profits, billions of dollars in profits.

My message is simple. The companies running gas stations and setting their prices at the pump: Bring down prices you're charging at the pump to reflect the price you're paying for the product. WTI Crude, the U.S. benchmark, climbed by about 3% to $86.37 a barrel on Tuesday, down from its high of $122.10 on June 7.

Oil industry leaders wrote in Tuesday's letter to the Biden administration that they must speak with one voice to disavow a refined product export ban or export restrictions that would raise global and U.S. prices, roil energy markets, and deter needed investments across the U.S. energy supply chain.