Texas Oil & Gas Association President Todd Staples on Sept. 21 issued a statement opposing calls for a ban on diesel exports, warning that such a move would cost domestic jobs and create fuel shortages at home, according to a news release from the association.
“Banning exports of diesel would cripple domestic jobs, lead to fuel shortages here at home and put power in the hands of China and Russia by forcing our allies to turn to those countries to meet their needs,” Staples said in the statement. “America’s energy leadership is needed now more than ever, and the best way to protect Texas and American consumers is to encourage continued investment in infrastructure which means more production, pipelines, processing and refining.”
Staples said global disruptions to the supply chain will eventually be resolved and that Texas will “emerge stronger and consumers better protected than ever.” He added, “A ban today means a weaker America tomorrow and should be rejected by all Americans.”
The statement comes as senior federal officials have publicly weighed in on the idea. According to background included in the TXOGA release, U.S. Interior Secretary Doug Burgum addressed the question during a G20 meeting in Houston last week, saying, “We would consider an export ban if we thought that actually might lower prices, but that’s not the case.” The release also cited a Sept. 14 Reuters report in which Burgum, an appointee of President Donald Trump, said bans on oil, gasoline or diesel exports could lead to retaliatory actions from other countries.
The association further pointed to U.S. Energy Secretary Chris Wright, who in a Sept. 17 interview with the Daily Caller said a diesel export ban would force a reduction in refining because of a lack of domestic pipeline capacity and storage and would result in higher fuel prices, according to the release.
The G20, or Group of Twenty, is an international forum that brings together major advanced and emerging economies to coordinate global economic policy and address key transnational issues, the release noted. The release did not identify who has called for the export ban.
Founded in 1919, TXOGA describes itself as the oldest and largest oil and natural gas trade association in Texas, representing every facet of the industry. Its statement reflects the industry’s position as the export question continues to draw attention from federal policymakers.