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Senate bill would let US ban petroleum exports

Posted on: Friday, 11 November 2005, 12:56 CST

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.

Source: REUTERS

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