Document KJNvpmLorkd2MqRnYDEbZOkb2

Document 51 From: Sent: To: Subject: Attachments: Crude.pdf Jack Cramton Thu, 30 Jan 2025 21:02:08 +0000 Fitzsimmons, Alexander [EXTERNAL] Oil and Gas Tariff Exemption Request US Oil and Natural Gas - New Tariff Exemptions.pdf, Benefits of North American Alex, As the administration considers the next steps on trade policy, we want to make sure you are aware of the imported products that the industry views as essential for achieving American energy dominance. The attached document includes a list of products assembled through a survey of our membership which would inhibit the administration's objective of achieving their energy goals if tariffs were applied to them. We are asking that these products be exempted from potential tariffs. Additionally, I have attached a document demonstrating the importance of Canadian crude to U.S. refineries. We would like to meet with you and your team to discuss this request at your convenience. Please let us know if you have any questions and are available to meet. Best, Jack Cramton Vice President Federal Relations o: (b) (6) e: oramtonleaoi.orq www.ani.orct I= I ******************************************************************** This message does not originate from a known Department of Energy email system. Use caution if this message contains attachments, links or requests for information. ******************************************************************** Document 51 Attachment 1 Tariff Exemptions for Energy Dominance Tariffs Exemptions for Oils, Natural Gas, and Refined Products Context: The U.S. has a global advantage in oil and natural gas production and refining/manufacturing. Historically, increased costs on crude oil, natural gas, or refined products led to upward pressure on costs to consumers. Tariffs would likely have a similar result and, could erode the U.S.'s standing as a net exporter of energy. U.S. refineries take advantage of heavy-grade crude oil from Canada and Mexico to meet U.S. consumers' demand, especially in Indiana, Montana, and Michigan. While there is the possibilityto retool U.S. refineries to utilize light-grade crude from the U.S., it would jeopardize U.S. energy dominance. Ask: Exempt from tariffs crude oil, natural gas, refined products, and used cooking oil under these HTS code headings (see Appendix A for the ten-digit HTS codes): (b) (4) Tariffs Exemptions for Critical Industrial Materials Context The U.S.'s global advantage in oil and natural gas is also built, in part, with industrial materials that cannot be sourced sufficiently in the U.S. to produce, transport, and refine hydrocarbons. These industrial materials include pipes for drilling, production, and pipelines; turbines; transformers; and taps, valves, pressure/temperature measuring devices, and centrifuges for facilities. US suppliers do not meet specifications required for procurement of these products. Ask: Exempt from tariffs the industrial materials criticalto U.S. oil and natural gas under these HTS code headings (see Appendix B for the ten-digit HTS codes): (134)(4) 1 Appendix A: Hydrocarbon Products to Exempt from Tariffs HTS Product Name (ID) (4) HIS Product Name 4) Appendix B: Industrial Materials Critical to US Oil & Natural Gas to Exempt from Tariffs HTS Product Name (ID) (4) 4 HTS Product Name 4 5 HTS Product Name 6 HTS Product Name (ID) (4) 7 Document 51 Attachment 2 U.S. Consumers Benefit from Oil & Natural Gas Imports from Canada and Mexico Crude oil imports from CANADA AND MEXICO ACCOUNT FOR 28% of the crude oil run through U.S. refineries. Canada 25% I 1 3M'e'/xoico U.S. refineries are configured for heavier crude oil from Canada and Mexico; which cannot be replaced with lighter domestic crude oil. Canadian imports account for 74% OF CRUDE OIL used in PADD 2 (Midwest) refineries. Imports of Canadian crude oil account for 74% of crude used in refineries located in PADD 2 (Midwest) and 44% in PADD 4 (Rocky Mountains) Share of regional refinery crude oil inputs by country of origin Canada Mexico Other Imported Domestic PADD 1 PADD 2 PADD 3 Imports from Canada are equivalent to 9% OF TOTAL U.S. NATURAL GAS CONSUMPTION THE MAJORITY OF THE NATURAL GAS ENTERS THE U.S. IN THE WEST with +30% entering through Idaho, though the majority of this is ultimately sent to Washington. 31% of U.S. natural gas imports entered the country through Idaho in 2023 Share of total U.S. natural gas imports by point-of-entry Idaho North Dakota Minnesota Washington Other Montana Other 13% Idaho 319E PADD 4 16. 1,; 41' 42% PADD 5 2S 9% Total U.S. Geography and existing pipeline infrastructure make it easier to get natural gas to market from Canada than shipping it from the South or East. Washington 16% Minnesota 11;`, North Dakota Iwo 01111i0 Note: Ths does not account for interstate transfers once thenatural gases importeo. for example. 24 buld ofCanadian naturalgas entered thela throughIdaho is 20.3. Out Idaho then transferred a net 2.1 bcf/d across state goes. with the snajoe.ne going to Washings, MidwestItefineries. 91, II;Case Studies " r % .4 I P et r eil tk 11101.4.17 : -1 e 1 ExxonM obit Joliet, IL C Olk CEMONPTLROAYEEOSe&S CT Ur 900 REFINERY PRODUCTS Gasoline, Diesel., Coke, Sulfur, Propylene, Asphalt INFLOW FROM CANADA 238,000 BPD OUTFLOW TO THE U.S. 252,000 BPD BP Whiting, IN EMPLOYEES & CONTRACTORS 2,700 REFINERY PRODUCTS Gasoline, Diesel, Jet Fuel, Asphalt , IIIMISZ1P1 1...1 INN .41671 - INFLOW FROM CANADA 350,000 BPD OUTFLOW TO THE U.S. 440,000 BPD Phillips 66 Wood River, IL cCd]5, ECMONPTI-ROAYECETOSR&S 800 REFINERY PRODUCTS Gasoline, Diesel, Jet Fuel, Petrochemical Feedstocks, Asphalt, Coke INFLOW FROM CANADA 134,000 BPD OUTFLOW TO THE U.S. 356,000 BPD Phillips 66 Billings, MT c 5 ECOMNPTi-ItAYCEETOSRSS' INFLOW 0 FROM CANADA 68,000 BPD REFINERY PRODUCTS Gasoline, Diesel, Jet Fuel, Coke OUTFLOW TO THE U.S. 67,000 BPD Marathon Petroleum Detroit, MI c ok CEMONPTLROAYECETSOR&S ur 525 REFINERY PRODUCTS Gasoline, Distillates, Asphalt, Natural Gas Liquids and Petrochemicals, Propane, Heavy Fuel. Oil INFLOW FROM CANADA 68,000 BPD OUTFLOW TO THE U.S. 140,000 BPD Marathon Petroleum Robinson, IL C CI R EMPLOYEiElS0&s CONTRACTORS Ur 650 co REFINERY PRODUCTS Gasoline, Distillates, Natural Gas Liquids and Petrochemicals, Propane, HeavyFuelDill INFLOW FROM CANADA 238,000 BPD OUTFLOW TO THE U.S. 252,000 BPD