Oil and Gas Industry Heavyweights Lobby Against Diesel Export Ban: API, Refiner CEOs, and Lawmakers Unite in Opposition

【Oil and Gas Industry "Heavyweights" Lobby Against Diesel Export Ban: API, Refiner CEOs, and Lawmakers Unite in Opposition】

(1) Reports indicate that upon hearing President Trump's proposal for a diesel export ban, the oil and gas industry has deployed its "heavyweight" lobbying efforts.

(2) Shortly after Trump floated the idea on Tuesday, American Petroleum Institute (API) CEO Mike Sommers issued a statement condemning the move, arguing that restricting U.S. exports would only "pour fuel on the fire" of rising diesel costs.

(3) The API also released a dedicated press release outlining the dangers of an export ban, stating that restricting U.S. diesel exports would severely disrupt domestic and international fuel markets, disrupt refinery operations, and exacerbate a global refining crisis that is already putting upward pressure on U.S. prices.

(4) Around the same time, a loose coalition of CEOs with ties to the API and the American Fuel & Petrochemical Manufacturers (AFPM) moved swiftly. Sources said Chevron CEO Mike Wirth, Phillips 66 CEO Mark Lashier, and other executives have begun calling contacts within the administration to push back against the ban; their relationships with various administration members differ, but all have clearly voiced their dissatisfaction.

(5) Sources said ExxonMobil and Valero have also joined the opposition effort.

(6) Additionally, the industry has secured support from Texas Senator Ted Cruz and Louisiana Republicans.