While no decision has been made, Republicans fear that such a move would hurt American producers and consumers.
Representative August Pfluger (R-Texas) said in a statement on Friday:
- Banning crude oil exports from the US would be a catastrophic mistake that will harm the livelihoods of blue-collar workers in the Permian Basin and result in higher prices for international crude, giving Russia more profits
- US energy policy should put Midland [Texas] over Moscow
- Even more, an export ban will lead to even higher costs for American families down the line.
- The Biden administration should be encouraging, not crippling, American energy production
Granholm said in October that an export ban was one of the tools that could be used to reduce energy prices.
Deputy Energy Secretary David Turk said on Wednesday that such a move is still under consideration, and analysis of the issue will be passed on to Granholm and Biden to help them make a decision.
While Pfluger argued that blocking exports would eventually drive domestic oil prices higher by reducing production, other critics have suggested that it wouldn’t take that long for Americans to see higher prices at gasoline pumps.
US Gulf Coast refiners that are tooled to process imported crude types would quickly see higher international prices, which would be passed on to consumers in costs for gasoline and other oil products, analysts have said.
Research firm IHS Markit warned last month that halting US crude exports would «deliver a shock to the world market,» disrupting supplies and making allocations to refineries more costly and inefficient.
IHS Markit executive Kurt Barrow said in a statement:
- This would lead to supply-chain and processing inefficiencies and possibly even higher gasoline prices as a direct result of an export ban
The US and Russia rank as the world’s top two oil producers, and Russia relies on oil and natural gas sales for around 1/5 of its GDP.
Representative Roger Williams framed the proposed export ban as the latest step in a «war on American energy» that includes Biden’s cancellation of the Keystone XL pipeline project:
- With every step, the Biden administration further caves to the far left of his party, stopping at nothing that will impede his goal to force a socialist Green New Deal on the American people