WASHINGTON, D.C. – Chet Thompson, president and CEO of the American Fuel and Petrochemical Manufacturers, today issued the following statement applauding the passage of S. 1982, the Save Our Seas Act.
Restricting exports would be a major unforced error for the President, tightening global fuel supplies, throttling U.S. fuel production and increasing costs for American consumers. Likewise, imposing product inventory requirements boils down to siphoning gasoline and diesel into storage, and away from consumers.
A duo of strong storms that swept through the United States has temporarily disrupted domestic fuel markets, but effective responses by the private and public sectors have limited the fallout from Hurricanes Harvey and Irma for Americans who need fuel critical for commerce.
Oil markets are famously sensitive to uncertainty. Global conflict can send prices higher on concerns that crude oil supplies could be disrupted. This is playing out in response to Russia’s unprovoked acts of war against Ukraine. Russia is a major supplier of crude oil and other energy products globally, though less so in the United States. In recent days, many market participants have committed to stop purchasing Russian oil. Shipping companies are concerned about loading cargoes from Russia and some shippers are finding the cost associated with such cargoes too high. These moves are tightening an already tight market.
The temporary enforcement policy announced by the Environmental Protection Agency (EPA) triggered criticism about some in the oil and gas industry getting a “license to pollute” during a public health emergency.
Nothing is more important than the health and safety of our people and our communities—the communities where our employees live, work and go to school.
AFPM recently voiced its disappointment at the decision by the U.S. Supreme Court not to hear ExxonMobil’s challenge to the New Hampshire Supreme Court’s decision to uphold a $236 million judgment against the company’s use of Methyl Tertiary Butyl Ether (MTBE) in the state’s gasoline supply in the 1990s.
AFPM President and CEO Chet Thompson and API President and CEO Mike Sommers sent a letter to President Biden responding to recent letters the Administration sent to major U.S. fuel refiners suggesting that these companies, their workforces and facilities throughout the country aren’t doing their part to bring fuel to the market and lower energy costs for consumers.
Fuel supply restrictions resulting from hurricanes and other natural disasters, often lead to price increases as the market reacts to rebalance supply and demand. To protect consumers, many states have enacted price gouging laws that limit a merchant’s ability to raise prices during an emergency.