The U.S. oil industry has shifted into emergency mode, mounting an aggressive campaign to prevent the Trump administration from restricting fuel exports to foreign countries.
Industry executives say the business of exporting fuel has boomed since the start of the U.S.-Israeli war against Iran, making any potential export ban an existential threat to their bottom lines.
While administration officials had assured the industry since the early days of the Iran war that an export ban was off the table, that confidence began to crack in June.
Trump directing the Justice Department to investigate oil companies for price gouging sent the industry into what one executive described as “Defcon 1.”
Alarm bells grew louder after Trump publicly stated that oil giants Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) were “making too much money,” a remark that rattled boardrooms and lobbyists alike.
The White House has moved to contain the fallout, issuing a firm denial that any export restrictions are being planned or considered by the administration.
White House spokesperson Taylor Rogers said in a statement, “While the President and his entire energy team have taken several actions to mitigate temporary disruptions to the energy market, the Administration has been quite clear: there is no plan to implement restrictions on oil and gas exports.”
White House representatives declined to confirm whether industry lobbyists had reached out to specific agencies or officials to discuss the export question directly.
The Energy Department did not respond to questions regarding the industry’s concerns or any internal deliberations on the matter.
Liberal and progressive groups, long-standing critics of Trump’s energy policies, have welcomed the president’s confrontational posture toward oil companies and have openly encouraged him to restrict fuel exports.
Industry advocates, however, warn that such restrictions would backfire badly and cause serious damage to American consumers and global energy markets.
“The administration has, very wisely, steered clear of export bans, because such policies would be harmful to American consumers and the broader global energy market,” Thompson said in a statement to Politico.
Thompson added, “They would lead to higher prices and less fuel production in the United States, the exact opposite of what we need right now,” reinforcing the industry’s core argument against any government intervention in export flows.
The standoff underscores a deepening tension between Trump’s populist instincts on energy prices and an industry that has thrived under the geopolitical disruptions his administration helped set in motion.
