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Sourse: FuelFix
WASHINGTON — As the House approaches a pivotal vote on crude exportsFriday, lobbyists for Valero Energy Corp. and other refiners have been walkingthe halls of Congress, pushing lawmakers to oppose legislation that wouldliberalize oil trade.
San Antonio-based Valero supports the longstanding crude export ban,which helps sustain a discount on the domestic oil it transforms into gasoline,diesel and jet fuel in 13 refineries around the country.
But the company’s high-profile opposition to crude exports comeseven as it actively exploits an existing exception to the ban by shipping U.S.oil to its refinery in Quebec. And last month, Valero told investors andanalysts that given current market conditions, it prefers importingmedium-grade crudes from foreign suppliers instead of buying lighter, sweeterU.S. oil.
Energy companies eager to sell raw, unprocessed U.S. crude aroundthe world point to Valero’s posture as evidence that the current traderestrictions are fundamentally unfair, giving refiners access to world marketsto buy the oil they use and sell the gasoline they make, even though domesticproducers don’t have the same latitude.
That fairness argument is at the heart of the congressional debateover oil exports and will be the backdrop for House votes Friday on the issue.
“Like all refiners, they have the ability to purchase crude oil frommore than 34 countries in the world and sell their refined product to another 140countries,” said George Baker, executive director of Producers for AmericanCrude Oil Exports. “That’s the very same principle we’re looking for.”
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