New Legislation Could Halt Gas Exports When Prices are High

The legislation comes as oil companies Exxon and Chevron recorded their highest quarterly profits ever made, with Exxon breaking the quarterly profit record of any oil company in history. 
The legislation comes as oil companies Exxon and Chevron recorded their highest quarterly profits ever made, with Exxon breaking the quarterly profit record of any oil company in history. 
(Lindsey Pound)

A long fall in gasoline prices has started to reverse this month following the Biden administration’s 15-million-barrel Strategic Petroleum Reserve (SPR) release, accompanied by Saudi Arabia—who leads OPEC+—accusing unnamed countries of using their emergency oil reserves to "manipulate markets rather than helping with shortages of supply."

While the AAA reports a current gas average of $3.76, the teetering price could shift again with new legislation brought to Congress’ table on Friday.

Gasoline Export Ban Act of 2022

Rep. Ro Khanna (D-CA) unveiled the Gasoline Export Ban Act of 2022, to “temporarily” halt gas exports when prices are high. 

The proposed bill would grant the President authority to prohibit exports of gas from the U.S. when the average price for gas has been equal to or higher than $3.12 per gallon for one week. Once the price of gas hits at or below $3.12, exports will resume.

The legislation comes as oil companies Exxon and Chevron recorded their highest quarterly profits ever made, with Exxon breaking the quarterly profit record of any oil company in history. 

“While Big Oil is reporting obscene profits this week, American families are struggling to afford gas at the pump. These companies should not be allowed to profit by exporting gas to other countries while we struggle with increased prices here at home,” said Khanna.

More Options on the Table

Other government officials are banking on biofuels in EPA’s upcoming announcement to get a hold on gas prices.

Sen. John Thune (R-SD), along with 12 other senators, penned a letter to EPA Administrator Michael Regan last week, pleading for “ambitious” blending targets in the agency’s 2023 biofuel announcement, and beyond.

“We request that EPA set the conventional target above 15 billion gallons,” the senators wrote. “Steps like these [ambitious targets and year-round E15] not only allow for more homegrown ethanol to be sold across the U.S. in order to increase fuel supply, but they also provide consumers options or more affordable gas options at the pump.”

Pete Ricketts, governor of Nebraska, says the pump prices answer lies far beyond E15. In fact, he says it’s double that.

Ricketts cites a 2019 E30 study carried out by the State of Nebraska that demonstrates E30 can be used in regular vehicles “without reducing performance or requiring extra maintenance.”

“Promoting higher ethanol blends should be a centerpiece of our national strategy to lower gas prices,” said Ricketts.

EPA looks to agree with Ricketts, as the agency has just approved phase two of the E30 study, which will kick off in 2023.

More on fuel:
E30 Ethanol Blend Inches Closer to Pumps with EPA's Latest Actions
Saudi Arabia Accuses Unnamed Countries of Using Emergency Oil Reserves to Manipulate Markets

 

Latest News

Corn Prices Ends Higher After USDA's Bullish Reports, Soybeans Flat: Where Do the Markets go Now?
Corn Prices Ends Higher After USDA's Bullish Reports, Soybeans Flat: Where Do the Markets go Now?

Grains end mixed with strong gains in corn in reaction to USDA's 90 million acre estimate and lower than expected stocks. But how much higher can corn go? Garrett Toay, AgTraderTalk, shares his thoughts.

Where Did All the Corn Acres and Principal Crop Acres Go? The Two Biggest Questions from USDA's Big Prospective Plantings Report
Where Did All the Corn Acres and Principal Crop Acres Go? The Two Biggest Questions from USDA's Big Prospective Plantings Report

USDA says farmers intend to plant 90 million acres of corn this year, which was lower than what the trade expected leading into USDA's big Prospective Plantings report.

USDA Shocks the Markets with 90 Million Corn Acre Estimate:  Where do Corn and Soybean Prices Go From Here?
USDA Shocks the Markets with 90 Million Corn Acre Estimate: Where do Corn and Soybean Prices Go From Here?

USDA provides bullish reports for corn, but neutral to bearish for soybeans and wheat. Brian Splitt, AgMarket.Net, has details.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Markets Chop Ahead of Report and Month End:  What Will the Markets Trade After the Reports?
Markets Chop Ahead of Report and Month End: What Will the Markets Trade After the Reports?

Grain and livestock markets see 2-sided trade Thursday morning ahead of month end and USDA data. What will the markets trade after the reports? Randy Martinson, Martinson Ag, has insight.

The Untold Farmer Stories Of Ukraine: Q&A With Howard Buffett
The Untold Farmer Stories Of Ukraine: Q&A With Howard Buffett

Farmer and philanthropist Howard Buffett held a fireside chat during the 2024 Top Producer Summit to share his experiences visiting the front line of Ukraine over the past two years.