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The idea to restrict or ban exports of U.S. crude oil and liquefied natural gas (LNG) is the “stupidest thing,” ConocoPhillips chief executive officer Ryan Lance said this week as international crude prices and U.S. gasoline prices soar amid the energy market turmoil over Russia’s invasion of Ukraine.
“Well, I’d say it’s probably the stupidest thing you could ever imagine,” the top executive of ConocoPhillips said at the CERAWeek by S&P Global energy conference in Houston on Tuesday, as carried by Natural Gas Intelligence.
According to Lance, the shock to global markets from banning LNG and oil exports out of America would have the opposite effect to reducing domestic energy prices.
The focus of the U.S. industry and officials shouldn’t be on the “short-sighted” short-term impact of the reduced supply of oil from Russia, but rather on the long-term implications of the lack of Russian oil on the market, ConocoPhillips’s CEO said.
Last month, before Putin invaded Ukraine, a group of Democratic Senators urged the U.S. Energy Department to take steps to limit U.S. natural gas exports, the record volume of which leaves Americans with higher energy bills this winter.
“As families across the country continue to face steep residential energy and heating costs, we urge you to take swift action to limit U.S. natural gas exports and examine their impact on domestic energy prices,” the U.S. Senators said in their letter to U.S. Secretary of Energy Jennifer Granholm in early February.
A month, a week, and a war in Europe later, the idea of limiting America’s energy exports is not being discussed. The U.S. Secretary of Energy, Jennifer Granholm, is even urging American producers to pump more oil and gas, in the short term.
“We are on a war footing—an emergency—and we have to responsibly increase short-term supply where we can right now to stabilize the market and to minimize harm to American families. That means releases from strategic reserves across the world, like we’ve done. And that means you producing more right now, where and if you can,” Granholm said at CERAWeek.
By Michael Kern for Oilprice.com
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Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com,