Exxon warns Biden admin against fuel export limits

Exxon Mobile CEO Darren Woods has warned the Department of Energy that a plan to curtail foreign fuel exports to beef up domestic storage of natural resources would destabilize markets.

"Continuing current Gulf Coast exports is essential to efficiently rebalance markets—particularly with diverted Russian supplies," he said in a letter to the DOE, which the Wall Street Journal obtained. "Reducing global supply by limiting U.S. exports to build region-specific inventory will only aggravate the global supply shortfall."

"Free market incentives remain the most efficient way for the industry to address these problems," he continued.

Concerns about Northeastern fuel supplies, especially in the New England region, have prompted federal efforts to prepare for rolling blackouts and a brutal winter as residents of those areas will likely face a significant energy shortage. The region has attempted to make a long term transition to renewable energy, but development of such facilities has been outpaced by the closure of existing plants reliant on fossil fuels.

Woods's letter comes in response to an initiative from DOE Secretary Jennifer Granholm, who in August wrote a letter to oil company executives asking them to limit foreign exports voluntarily, but hinted that the government may pursue "additional federal requirements or emergency measures" should they fail to do so, the WSJ reported.

"The most effective way to resolve this issue without having to deploy emergency actions is for industry to prioritize building inventories during this critical window," the letter continued.