Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Fuel Export Limits Will Only Worsen Global Supply Shortfall, Exxon CEO Tells DoE - DJ

Published 30/09/2022, 14:18
Updated 30/09/2022, 14:18
© Reuters.

© Reuters.

By Senad Karaahmetovic

Exxon (NYSE:XOM) Chief Executive Darren Woods has warned the U.S. government against reductions of fuel exports, which was proposed by the Biden administration last month.

These limits would facilitate another negative impact on supplies and ultimately lead to higher gas prices in the U.S., Woods told the Energy Department (DoE).

“Continuing current Gulf Coast exports is essential to efficiently rebalance markets—particularly with diverted Russian supplies,” Mr. Woods wrote in a letter seen by the Wall Street Journal.

“Reducing global supply by limiting U.S. exports to build region-specific inventory will only aggravate the global supply shortfall.”

However, the Energy Department reiterated its stance that parts of the country, especially the Northeast, have oil and gas supplies that are not enough to meet demand as they sit on multi-year lows.

“The administration has impressed upon the oil and gas industry that it must do more to ensure fair prices and adequate supply for all Americans, while meeting the needs of our allies,” the spokesperson of the DoE told WSJ.

Still, Woods rejected these claims by saying that East Coast had 59.3 million barrels of total gasoline and ethanol in storage, which is only 1% lower than usual. He added that pipelines that take fuel from the Gulf Coast to the East Coast are full.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.