U.S. refiners oppose easing crude export limits

marinelink.com
Wednesday, March 12, 2014

Four U.S. oil refiners, trying to counter growing calls to lift the nation's ban on most crude oil exports, have launched the first major lobbying effort to keep abundant U.S. oil supplies from being sold overseas.

Rising U.S. shale oil production has opened the door to a possible revision of the decades-old policy restricting most exports of unrefined petroleum.

Various groups and lawmakers favoring exports have been fast out of the gate, seizing on a comment by U.S. Energy Secretary Ernest Moniz in December that it might be time to take another look at the law.

Philip Rinaldi, chief executive of Philadelphia Energy Solutions, said the anti-export group Consumers and Refiners United for Domestic Energy, or CRUDE, was formed with the goal of preventing a hasty reversal of policy.

Abruptly allowing exports after a few years of rising production, but decades of concerns about energy security, would be "rash," Rinaldi told Reuters on Tuesday.

"What's the rush? You've waited 40 years. Why not take time to kind of understand the dynamics of the market," he said.

CRUDE's goal runs counter to the message from major oil and gas lobbies such as the American Petroleum Institute and the American Fuel and Petrochemical Manufacturers.

API is dominated by crude oil producers, but Rinaldi said CRUDE was founded to speak specifically to the needs of refiners and the users of crude oil products.

PES, based in Philadelphia, is joined in the coalition by Monroe Energy of Trainer, Pennsylvania; PBF Energy Inc of Parsipanny, New Jersey; and Alon USA Energy Inc of Dallas.

Certain market and policy conditions need to be met before the coalition could support oil exports, Rinaldi said.

The group has hired lobbyists from the firm Peck Madigan Jones to push its views in Washington, disclosure forms show.

Established after the 1970s Arab oil embargo, the export ban has divided oil producers, who support its repeal, and some refiners, who have benefited from being able to buy plentiful and relatively cheap U.S. crude and then exporting the value-added refined products.

While U.S. law prohibits the export of crude oil, overseas sales of petroleum products such as gasoline and diesel are allowed.

Oil drillers argue that they face a growing disconnect between production of light sweet crude from shale formations in the United States, and capacity constraints among refiners on the U.S. Gulf, whose equipment is more suited to heavier crudes.

But Rinaldi said the market is not currently saturated, noting that the United States still imports millions of barrels of oil per day and that crude producers are reluctant to enter into long-term contracts that lock in prices for refiners.

These are "all signs that the market is nowhere near glutted, which is the point when you think about opening up an export market," Rinaldi told Reuters.

The group's other major concern would be a relaxation or lifting of the crude oil export ban while the nearly century-old shipping statute, the Jones Act, remains in place.

The Jones Act limits domestic shipping to U.S.-flagged vessels. Leaving the law intact would put U.S. refiners at a severe disadvantage to foreign companies if the export restrictions were suddenly removed, Rinaldi said.

He said an argument advanced by export backers that exporting crude from the United States and importing refined oil would mean cheaper gasoline at the pump is unlikely to resonate with consumers.

"I don't think John Q. Public thinks that has any chance of making gasoline cheaper," Rinaldi said.

 

By Ayesha Rascoe

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

New Standard for LNG Cargo Containment Systems

Wilhelmsen Technical Solutions (WTS) said it has successfully completing the gas trial for the first LNG carrier built to a Boil Off Rate (BOR) of 0.08% per day.

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

Finance

Nordic American Offshore Declares Dividend

Nordic American Offshore Ltd. today announced that its board of directors has declared a dividend of $0.45 per common share for the third quarter 2014. This is the same as for the second quarter 2014.

Bollore Africa Logistics Sees Profit Plunge in H1

First half 2014 profit at shipping company Bollore Africa Logistics plunged to 5.89 billion CFA francs ($11.48 million) from 9.45 billion CFA francs in the same period last year,

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

Energy

Corvus Gains Support from WINN Initiative

Corvus Energy announced today the award of $1.3 million in repayable assistance from the Western Innovation (WINN) Initiative for its project to further develop the Corvus Energy Storage System.

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

Fuels & Lubes

LNG America, Buffalo Marine to Design LNG Bunker Fuel Network

LNG America announced it has entered an agreement with Buffalo Marine Service, Inc. (Buffalo Marine) to cooperate on the design of an LNG bunker fuel network for the U.

Maersk to Bump Asia-Europe Rates

Container shipping company Maersk Line, a unit of Danish conglomerate A.P. Moller-Maersk , plans to raise freight rates sharply on main routes from ports in Asia to ports in northern Europe,

Weathernews Opens Manila Operations Center

Filipino marine professionals employed to meet demand for service from the shipping industry Weathernews Inc. announced it has established a new operations center

Maritime Security

USCG Search For Boater Missing 50 miles South St Marks, Florida

The Coast Guard is searching for a missing boater 50-miles south of St. Marks, Florida, Sunday. Missing is George Taylor, 60, from Tallahassee, Florida, who

Austal Launches 5th CCP Boat

Austal launched yesterday its fifth in-series Cape Class Patrol Boat (CCPB) at the Company’s Australian Defence Facility in Henderson, Western Australia. Cape

Mount Whitney Departs Batumi, Georgia

The U.S. 6th Fleet command and control ship USS Mount Whitney (LCC 20) departed Batumi, Georgia, Oct. 18 after completing a successful port visit. While in Batumi,

Government Update

India to Develop Iran's Chabahar Port

India will float a company to develop Iran's Chabahar Port, a government statement said on Saturday, as New Delhi aims to take advantage of a thaw in Tehran's relations with world powers.

Shadrin is D.G. of Gazprom Investholding

On October 13 the Gazprom leadership acceded to Alisher Usmanov's request for releasing him from his position as Director General of Gazprom Investholding. At the meeting Alexey Miller,

ITIC Measures against Ebola

The International Transport Intermediaries Club (ITIC) has issued the following general advice related to the outbreak of Ebola. Vessels that have recently

Offshore Energy

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

Autonomous Technology for Offshore Wind Farm

ASV Ltd in association with Planet Ocean Ltd, have received funding from the GROW:OffshoreWind initiative to investigate how the use of Autonomous Surface Vehicles

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1594 sec (6 req/sec)