New Legislation Could Halt Gas Exports When Prices are High

Fri, 28 Oct 2022 20:48:45 GMT

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

Saudi Arabia to Relax its Wheat Import Standards

Mon, 23 Nov 2020 00:47:34 GMT

Russia and Saudi Arabia Deepen Agricultural Trade Ties

Saudi Arabia will relax its wheat import standards opening the door to Black Sea imports and strengthening agricultural trade ties with Russia.
Wheat from the Black Sea did not previously meet Saudi specifications for zero-pest damage.
Saudi Arabia has long been a reliable export destination for U.S. and European wheat and has been one of the last Middle East markets not dominated by Black Sea wheat.
What It Means For The U.S. Farmer: At FBN, we believe that this development can be a negative for the U.S. farmers and the U.S. wheat program. Saudi Arabia’s decision to relax their import standards allows Russia to increase their wheat export program with one of America’s biggest political allies in the region. Ultimately this development is another reminder of Russia’s growing dominance in the global wheat trade.

China Purchased U.S. Agriculture Goods Before Tariff Threat

According to government data, China bought light volumes of U.S. soybeans, wheat, sorghum and pork last week ahead of the latest escalation of trade tensions.
USDA’s latest export sales data showed that China bought 71,200 tonnes of soybeans, 60,000 tonnes of wheat, 50,000 tonnes of sorghum and 1,350 tonnes of pork for the week ending August 1.
On Monday, China’s Ministry of Commerce said that the country would be suspending purchases of U.S. agricultural products by Chinese companies.
With Chinese buying on hold, U.S. exporters will focus on shipping orders made earlier this year during trade negotiations. Some of the outstanding commodities that still need to be shipped includes: more than 4 million tonnes of soybeans and close to 103,500 tonnes of pork.
What It Means For The US Farmer: At FBN, we believe that the current political climate between the U.S. and China, combined with China’s new policy of suspending purchases of U.S. agricultural goods, is a negative for the U.S. farmer.

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