Debate over restricting diesel exports heats up; U.S. Energy Secretary reportedly warns industry to prepare

U.S. Energy Secretary Chris Wright told oil industry executives to prepare for a possible measure to restrict diesel exports amid growing discussions within the Trump administration on the issue. Wright conveyed the message to corporate executives by phone Tuesday evening, just hours after Trump said he had urged government officials to consider imposing restrictions on diesel exports, according to people familiar with the matter. Discussions about restricting diesel exports continued Wednesday, but no final decision has been made. Trump's core aides are divided on the matter, while oil company executives have warned the White House that any ban would ultimately drive up global prices. The people familiar with the matter disclosed the internal administration discussions and Wright's call with industry executives on condition of anonymity because the talks were not public. On Wednesday, Wright highlighted a possible voluntary solution, saying that even without a diesel export ban, the government still hopes to help the industry increase diesel supply on its own. "We're working with the industry in some form to try to more effectively increase U.S. diesel supply and curb upward price pressure," he said at an event hosted by The Economist. "But this can be done through simpler, voluntary and cooperative means, without resorting to blunt instruments that would reduce refining capacity." Later, he was more explicit, saying a full ban on diesel exports is not under consideration. "Nobody wants a full ban or a complete halt to diesel exports," he said at another New York Times event. "That's not the focus of the discussion. What's being discussed is how to most effectively get more diesel to the United States and ensure maximum supply of fuels such as gasoline and jet fuel."