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 June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

FUGRO, Cross Group Awarded Multi Well GoM Contract

Fugro’s dynamically positioned multi-purpose drilling, well intervention and geotechnical vessel, Fugro Synergy, will showcase her capabilities on a multi well

Otto Marine Secures $131 mln in New Contracts

Otto Marine Limited, an offshore marine company which specializes in building complex offshore support vessels, ship chartering and offers specialized offshore services,

ICS: U.S. Approach to LNG 'Protectionist'

According to the Internatinal Chamber of Shipping, the United States Congress signaled last week its intention to approve major free trade deals with Asia and Europe.

Tanker Trends

Canada Slaps Sanctions on Russia Energy Firms

Canada slaps sanctions on Gazprom, other Russia energy firms   Canada is imposing economic sanctions against Russian energy firms such as natural gas producer

Tanker Converted to LNG-electric Propulsion

Bergen Tankers’ 95-meter-long chemical and product tanker Bergen Viking has returned to service following its conversion from diesel-electric to liquefied natural gas (LNG)-electric propulsion.

Dorian Delivers the Cobra

Dorian LPG Ltd., a leading owner and operator of modern Very Large Gas Carriers reported today that it took delivery of the ECO VLGC Cobra from Hyundai Samho Heavy Industries.

Finance

Multimodal Freight Bill Introduced in US Senate

Cantwell, Booker, Murray, Markey introduce freight investment legislation aiming to eliminate chokepoints at critical highway, rail, port and intermodal facilities to support economic growth,

Crowley Acquires 4,300 Pieces of Liner Equipment

In response to continuing high customer demand, Crowley Maritime Corporation’s liner services group has placed orders for additional equipment, including hundreds

DPE is New Majority Shareholder in INTERSCHALT

Deutsche Private Equity GmbH (DPE) is set to become the new majority shareholder in INTERSCHALT maritime systems AG, the maritime software and services provider

Energy

Canada Slaps Sanctions on Russia Energy Firms

Canada slaps sanctions on Gazprom, other Russia energy firms   Canada is imposing economic sanctions against Russian energy firms such as natural gas producer

FUGRO, Cross Group Awarded Multi Well GoM Contract

Fugro’s dynamically positioned multi-purpose drilling, well intervention and geotechnical vessel, Fugro Synergy, will showcase her capabilities on a multi well

Baltic Exchange Eyes Move into Commodities

Baltex reaches breakeven level since start of 2015; Baltic previously faced broker opposition over platform. London's Baltic Exchange is studying a potential

Maritime Security

Austal Starts Next US Littoral Combat Ship

Austal and the U.S. Navy held a keel-laying ceremony today for the future USS Manchester (LCS 14), marking the first significant milestone in its construction.

China Oil Rig Returns Off Vietnamese Coast

China has again deployed the Haiyang Shiyou 981, a semi-submersible oil platform which caused a standoff between Chinese and Vietnamese vessels last year, to the disputed South China Sea region,

Chinese Submarine Docked in Karachi ?

The intervention of China in the Arabian Sea is increasing with each passing day. China's deadliest attack submarine crept past Indian waters and docked in Karachi.

Government Update

Maritime, Migration Heads Pledge Joint Action

The heads of the International Maritime Organization (IMO) and the International Organization for Migration (IOM) on Monday, June 29 reaffirmed their commitment

Canada Slaps Sanctions on Russia Energy Firms

Canada slaps sanctions on Gazprom, other Russia energy firms   Canada is imposing economic sanctions against Russian energy firms such as natural gas producer

Chinese Prime Minister to Visit CMA CGM

The CMA CGM Group is will host the Chinese Prime Minister Li Keqiang in its Marseilles headquarters on July 1.   Chinese Prime Minister Li Keqiang is scheduled

 
 
Maritime Careers / Shipboard Positions Maritime Security Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1759 sec (6 req/sec)