The Biden administration reportedly has sent warnings to top U.S. refiners that it could take “emergency measures” to curb gas exports, Bloomberg reported on Friday, as stockpiles of gasoline and diesel stay close to traditionally low ranges within the Northeast.
“Given the historic degree of U.S. refined merchandise exports, I once more urge you to focus within the close to time period on constructing inventories in america, somewhat than promoting down present shares and additional growing exports,” Vitality Secretary Jennifer Granholm wrote in a letter that was despatched final week.
“It’s our hope that corporations will proactively deal with this want,” the letter mentioned. “If that isn’t the case, the administration might want to think about extra federal necessities or different emergency measures.”
Emergency actions will be averted if refiners prioritize “constructing inventories throughout this essential window,” Granholm mentioned, primarily asking refiners to prioritize U.S. customers over maximizing income by supplying Europe, which can be dealing with its biggest-ever vitality disaster.
The issue is not U.S. exports, however somewhat “the political and regulatory assault on U.S. production and refining,” in response to a Wall Avenue Journal editorial this week.
“Gas storage ranges can be a lot larger within the Northeast if not for New York state’s pure gasoline pipeline blockade, which has made the area extra depending on oil for vitality,” WSJ wrote.
The Biden administration’s bullying is also “a slap within the face to European allies making an attempt to diversify vitality sources from Russia.”