Landry's Diesel Export Ban Faces Pushback from Oil Industry Leaders

Louisiana Governor Jeff Landry is calling for a ban on diesel exports to lower historically high prices, but oil industry leaders are pushing back against the idea. According to Landry, the export of diesel fuel has been a major contributor to rising prices in the US, with American citizens subsidizing Europe's problems. However, Tommy Faucheux, president of the Louisiana Mid-Continent Oil and Gas Association, argues that halting exports would force refineries to reduce production, leading to increased costs for American families and businesses.

Faucheux notes that domestic pipeline capacity and storage are already at capacity, making it difficult to redirect supply. Additionally, U.S. Secretary of Energy Chris Wright has expressed similar concerns, stating that a diesel export ban would result in an increase in fuel prices. The American Fuel & Petrochemical Manufacturers also warn that the ban wouldn't work, citing the interconnected processes used to produce diesel and gasoline.

Landry's proposal is part of a growing push by agricultural state politicos and GOP candidates worried about high diesel prices affecting farmers' income. U.S. Sen. Chuck Grassley has urged President Trump to enact a diesel embargo, similar to one implemented in the 1970s.