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

Offshore

MN 100: Bordelon Marine

The Company: Founded in 1979, Bordelon Marine is a leading provider of Marine Transportation services operating in the Gulf of Mexico and around the world. The

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Yamal LNG Arctic Project in Doldrums

The massive $27 billion Yamal LNG liquefied-natural-gas venture in the Arctic Circle, a centerpiece of President Vladimir Putin’s plan for Russia has been squeezed by U.

Tanker Trends

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

Oil Plunge Deepens High-yield Gloom

US crude fell to a more than six-year low this week, clouding the picture for a high-yield energy sector that already faces a significant cull when credit lines are reevaluated in autumn.

Oil Soars in Biggest One-day Rally in Years

Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies

Finance

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

DP World Profit Up 22%

Global marine terminal operator DP World today announced strong financial results from its global portfolio of marine terminals for the six months to 30 June 2015,

Med Crude-Russian Urals Edges Lower in Med, Baltic

Russian Urals crude weakened in the Mediterranean and in the Baltic on Friday, while trading activity was limited ahead of a long holiday weekend in Britain, traders said.

Energy

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

Fuels & Lubes

Marad Celebrates Deployment of Maritime Fuel Cell Project

The U.S. Department of Transportation’s Maritime Administration (MARAD) today celebrated the launch of field trials for the first prototype hydrogen fuel cell

Thordon Bearings Names New China Distributor

Thordon Bearings Inc. of Canada announced that CY Engineering Co. Ltd. will take over as the new authorized distributor for the People’s Republic of China, including Macau and Hong Kong,

LUKOIL Marine Lubricants Opens Gothenburg Warehouse

LUKOIL Marine Lubricants informs it has opened a new warehouse in Gothenburg.   The marine lubricants supplier said it constantly strives to expand its global supply network,

Maritime Security

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Russian-Chinese Naval Drills End

The second phase of the Russian-Chinese Joint Sea-2015 naval maneuvers has officially ended outside the port of Vladivostok in Russia’s Far East, says spokesman

Government Update

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Oil Steadies as Equities Rally

Recovering stock markets boost oil prices; U.S. crude on track for first weekly gain in nine weeks. Oil prices steadied on Friday after bouncing back from six-and-a-half-year

Offshore Energy

MN 100: Bordelon Marine

The Company: Founded in 1979, Bordelon Marine is a leading provider of Marine Transportation services operating in the Gulf of Mexico and around the world. The

Yamal LNG Arctic Project in Doldrums

The massive $27 billion Yamal LNG liquefied-natural-gas venture in the Arctic Circle, a centerpiece of President Vladimir Putin’s plan for Russia has been squeezed by U.

MHI, SBG Invest in Wind Energy Startup Altaeros Energies

Mitsubishi Heavy Industries, Ltd. ("MHI") and the Suhail Bahwan Group ("SBG") have invested in Altaeros Energies, a Massachusetts-based technology company, to

 
 
Maritime Contracts Maritime Standards Naval Architecture Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.9196 sec (1 req/sec)