American Fuel & Petrochemical Manufacturers President Chet Thompson said a deal by U.S. lawmakers to allow crude oil exports provides “no benefit to any refiner.” Via Reuters, the group said in a statement that allowing unfettered crude oil exports without addressing other policies such as the Renewable Fuel Standard and the Jones Act would harm domestic refiners’ ability to compete in the global market.
AFPM has said that the refining industry would be hit hard by a removal of the ban without any action on the Jones Act. The 1920 law requires ships used for domestic transport to be built in the U.S. and crewed by at least 75% U.S. citizens. AFPM says the rules make it cheaper to import goods such as refined products rather than buy them in the U.S. Shipping costs have risen during the domestic oil boom, which has left the U.S. with a shortage of Jones Act vessels needed to move crude oil from Gulf Coast terminals to East Coast refineries.
Lawmakers included a provision in the deal that would give independent refiners a tax break on their oil transportation costs. Thompson, however, said the proposal is too narrow to benefit any refiner.
The deal to lift the 40-year-old oil export ban is part of a $1.1 trillion spending package that funds the government through September 2016. Congress approved the bill and it was signed into law by President Obama on Friday.
SEE ALSO: Is it time to lift the oil export ban?
