Senate bill would let US ban petroleum exports

WASHINGTON (Reuters) – The U.S. Energy Secretary would gain
authority to temporarily ban exports of American-produced
gasoline, heating oil and other refined petroleum products
during a supply emergency, under legislation introduced in the
U.S. Senate.

Under the bill, introduced on Thursday by Democrat Herb
Kohl of Wisconsin, oil product exports from a specific region
of the country could by banned if Energy Secretary Sam Bodman
determined supplies in that area have fallen or will fall below
expected demand.

Kohl and Republican Sen. Susan Collins of Maine had asked
eight major oil companies last week not to export heating oil
this winter to help keep prices down and ensure adequate supply
for the American market.

“We believe that by halting such exports, your companies
could significantly ease the expected burden of skyrocketing
home heating prices for the coming winter,” the lawmakers said
in a letter to the heads of the largest producers of home
heating oil in the United States.

Top executives of major oil companies who testified at a
Senate hearing this week on the industry’s record profits drew
criticism for exporting U.S. petroleum products after Hurricane
Katrina disrupted domestic gasoline supplies.

The executives defended their companies’ petroleum
shipments, some of which went to Caribbean nations, Canada and
Mexico, saying those exports had been normal business for
years.

U.S. petroleum exports averaged almost 1.3 million barrels
per day during the first nine months of this year, up 26
percent from the same period in 2004, according to the American
Petroleum Institute (API).

Meanwhile, imports of crude oil and oil products averaged
13.2 million barrels a day, up 1.2 percent, the API said.