API, AFPM Oppose Quotas, Tariffs, Bans on Imported Oil
4/02 8:53 AM
API, AFPM Oppose Quotas, Tariffs, Bans on Imported Oil OAKHURST, N.J. (DTN) --- The American Petroleum Institute and American Fuels and Petrochemicals Manufacturers in a letter to U.S. President Donald Trump on Wednesday (4/1) spoke out against measures restricting supply as the industry grapples with the COVID-19 pandemic. "Imposing supply constraints, such as quotas, tariffs, or bans on foreign crude oil would exacerbate this already difficult situation, jeopardize the short and long-term competitiveness of our refining sector world-wide, and could jeopardize the benefits Americans experience as a result of our increasing energy dominance," API President and CEO Chet Thompson and AFPM President and CEO Mike Sommers wrote. U.S. refiners rely on crude oil imports as feedstocks, even as the country has increased crude production as well as crude oil and products exports. Restrictions on feedstock, they wrote, would put our exports at risk. The letter indicated many U.S. refineries have cut production 25% or more on reduced products demand, particularly gasoline due to heavy travel restrictions and widespread social distancing. "Ultimately, it is demand recovery that will help the upstream, midstream, and downstream American oil industry," said the CEOs. (c) 2020 DTN. All rights reserved.