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AFPM opposes the Inflation Reduction Act as written. We evaluated the bill against our core principles, specifically whether the legislation would support strong U.S. refining and petrochemical industries and whether it pursued emissions reductions in a market-based and cost-effective manner. Unfortunately, the IRA falls short of these goals.

AFPM President and CEO Chet Thompson issued the following statement: "AFPM applauds the United States Trade Representative (USTR) for elevating this important matter. Mexico’s policies toward American energy companies need to be addressed in the spirit of the United States-Mexico-Canada trade agreement (USMCA). American refiners have made significant investments in Mexico-based operations, jobs and infrastructure and we want our trade relationships with Mexico to remain healthy and mutually beneficial.”

With the possibility that the EPA and policymakers could make updates to the Risk Management Plan (RMP) program, there are three things we encourage them to keep in mind: 1. RMP is working as intended and keeping people safe. 2. Any changes to RMP must be evidence-based and actionable. 3. Using RMP to zero in on hydrofluoric acid (HF) alkylation at refineries could have major impacts on U.S. fuel supplies.

The return of fuel demand to pre-pandemic levels and the slower rebound of crude oil and fuel production has created concerns about whether supplies of gasoline, diesel and jet fuel will be sufficient to meet global demand. U.S. refineries are up and running at near maximum utilization. Other major refining countries, for a variety of reasons, have not kept pace bringing their facilities back into operation or resuming sales of fuel to the market. As a result, wholesale fuel prices have increased and so have refinery “crack spreads."

A Strategic Petroleum Reserve (SPR) release—which basically involves making additional barrels of crude oil available for sale to the world market—is meant to increase global supply. Meeting today’s demand with more supply is a recipe for lower prices. The United States released millions of barrels from our SPR in the past several months, as did many other countries.

Refinery utilization, measures how much crude oil refineries are processing or “running” as a percentage of their maximum capacity. It tells us roughly how much of our refining muscle is being put to work manufacturing fuel. American refineries are running full-out, at about 95% of total capacity, contributing more fuel—gasoline, diesel, jet fuel, etc.—to the global market than any other country. In fact, U.S. refineries process more crude oil every day than the United States produces, and we make more finished fuels than the United States consumes.

Some policymakers are rumored to be considering a ban on crude oil and/or U.S. refined product exports. This would be a mistake. Ending U.S. crude oil or refined product exports won’t help U.S. consumers by lowering prices at pump. In fact, it could make things even worse. Let’s take a closer look at how a refined product export ban would affect gasoline and diesel supplies and, thus, prices in the United States and around the world.