
As Joe Biden unloads the strategic petroleum reserve and oil producers sell to Europe and Asia, the United States is exporting the most oil ever. Myles McCormick and James Politi report for the Financial Times:
The US is exporting record volumes of oil and taking on a bigger role as a fuel supplier in response to the global energy crunch caused by Russia’s war in Ukraine, even as tensions flare over petrol prices at home.
Combined US exports of crude oil and refined petroleum products surged to 11.4mn barrels a day last week, according to data released on Wednesday by the Energy Information Administration, the most ever reported.
The shipments were almost 2mn b/d higher than the previous week and came despite oil companies facing pressure from Washington to send less fuel abroad and build domestic stocks as president Joe Biden’s administration tries to curb prices at the pump ahead of critical midterm elections.
Buffeted by high prices, the White House has refused to rule out controls on fuel exports. Energy secretary Jennifer Granholm wrote to oil refiners in August calling on them to build stocks of fuel to avoid “additional federal requirements or other emergency measures”.
The prospect of curbs on exports re-emerged after the Saudi Arabia-led Opec+ oil cartel recently cut production. The Biden administration said last week “all options” remained on the table to “ensure domestic supply”.
Export controls would risk angering countries that depend on US supplies. Oil companies have warned that any ban on refined product sales could increase domestic fuel prices and “alienate US allies during a time of war”.
The US has become a crucial supplier to global energy markets since the shale drilling revolution transformed production from its oil and gasfields more than a decade ago.
Read more here.