Restricting exports would be a major unforced error for the President, tightening global fuel supplies, throttling U.S. fuel production and increasing costs for American consumers. Likewise, imposing product inventory requirements boils down to siphoning gasoline and diesel into storage, and away from consumers.
AFPM President and CEO Chet Thompson issued the following statement regarding President Biden’s suggestion that a Windfall Profit Tax should be considered to address fuel supplies and prices: “Once again, the President is more worried about political posturing before the Midterms than he is about advancing energy policies that will actually deliver for the American people."
AFPM President and CEO Chet Thompson issued the following statement in response to the White House’s latest announcement of a release of crude oil from the SPR: “The SPR was never meant to serve as a substitute for actual crude oil production. At best, SPR releases are a short-term fix, not a long-term solution or signal of stability to a market craving reassurance..."
AFPM president and CEO Chet Thompson issued the following statement in response to a vote of the California Air Resources Board (CARB) approving California’s Advanced Clean Cars 2 regulation, establishing an escalating ban on the sale of gasoline and diesel-fueled cars and trucks, culminating with a 100% ban by 2035. "California’s radical ban on gasoline- and diesel-fueled cars and trucks will have devastating implications for consumers, energy security and the U.S. manufacturing economy. It is critical that President Biden and the EPA reject California’s request for a Clean Air Act waiver to proceed with this unlawful ban."
Letter from AFPM CEO to House Transportation and Infrastructure Leaders Lays Out Priorities for Bipartisan STB Reauthorization
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.”
What They’re Saying: Experts Examine How Export Bans Could Drive Up Fuel Prices and Risk Closing Refineries
The U.S. refining sector is the most competitive and resilient in the world. Participation in the global market benefits U.S.
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."
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.