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Why a diesel export ban would backfire
It may seem logical that if the United States stops exporting diesel, more fuel will stay here and prices will fall. But more diesel in the United States does not necessarily mean lower prices at the pump, especially when the United States is not facing a shortage of diesel. If refiners cannot export or economically store surplus diesel, some could reduce production, which tightens supplies, puts upward pressure on fuel prices and weakens U.S. energy security.
What they’re saying, part 1: Export ban is the wrong move for U.S. energy security
We've heard some talk lately about export bans and whether cutting off U.S. crude oil or American-made diesel, gasoline and refined products from the global market could be used as a tool to cut prices for consumers. Administration officials like Energy Secretary Chris Wright and Interior Secretary Doug Burgum see export bans as a clear unforced error, and they’re not alone. Other experts, commentators and analysts share the view that an export ban would be a costly and counterproductive mistake. It would mean less U.S. fuel production, tighter supplies, greater energy security risks and higher prices.
Issues and Policies
18.6 million
U.S. refining increased to more than 18.6 million barrels per day, almost 20% of global capacity.
$185 billion
Petrochemical manufacturers have invested $185 billion to expand operations to meet growing demand.