The editorial board for the Houston Chronicle raked President Donald Trump over the coals Thursday morning for his plan to ban diesel exports from the United States for three months — a plan that even some of his own advisers have warned will only make the fuel crisis even worse.
Trump's solution, wrote the board, only proves he doesn't understand how energy markets work.
"There isn’t one big, frictionless domestic oil and gas market for Trump to micromanage," wrote the board. In Houston, they continued, there is surplus production of diesel, "but infrastructure bottlenecks and regulatory barriers like the Jones Act make it difficult to easily transport it to, say, Boston and the rest of the East Coast, so we export the rest to buyers across the planet. Hang out in Galveston and you can watch those diesel-filled tankers sail across the horizon."
At the same time, the board wrote, East Coast states are reliant on importing diesel because they can't make enough to meet demand. "Banning U.S. exports would make those global prices skyrocket — sending the price at the pump along the Atlantic coast skyrocketing, too."
States and cities that produce a lot of petroleum might temporarily get relief at the pump, the board noted, but it wouldn't last: "Because we make more than we can use, stockpiles would build, storage tanks fill up, and refiners would have the untimely incentive to actually produce less. Meanwhile, the energy industry could be scared away from making any future investments in refining or export capacity."
The actual solution to the crisis, the board continued, is to end the Iran war that Trump started, which is destabilizing global energy markets in the first place.
