Bush pushes oil drilling, but more fuel exported

By Tom Doggett

WASHINGTON (Reuters) - The White House on Wednesday made a new push for expanded offshore drilling to help lower fuel prices, days after new government data showed American petroleum product exports hit record levels.

Flanked in the White House Rose Garden by his cabinet after meeting to discuss energy issues, President George W. Bush called on Congress to pass legislation before its month-long August recess to allow more offshore drilling.

"To reduce pressure on prices, we need to increase the supply of oil, especially here at home," Bush told reporters.

Bush this month lifted an executive order that had banned drilling in most U.S. waters and wants Congress to end its own drilling ban before lawmakers leave town in August.

"The sooner Congress lifts the ban, the sooner we can get this oil from the ocean floor to your gas tank," Bush said.

Critics of the offshore drilling plan noted that the Energy Department released data this week showing that U.S. exports of finished petroleum products, including gasoline, diesel fuel and jet fuel, soared to 1.592 million barrels per day in May.

The exports set a record for the month and were up 31 percent from a year ago.

Jim Greeff, deputy legislative director for the League of Conservation Voters, said the export data shows it was "misleading" for the administration or the oil industry to suggest new offshore supplies would reduce U.S. pump prices.

"The oil companies pushing for drilling is nothing more than a land grab," Greeff said.

The Bush administration says the United States needs to develop more of its oil resources to reduce its addiction to foreign crude.

Exports were equal to about half the 3.204 million barrels a day in petroleum products that the United States imported during May.

In May, U.S. oil companies shipped 183,000 barrels of gasoline a day out of the country, even as Americans saw prices at the pump steadily rise.

May's gasoline exports were almost double year-earlier levels, the most for May since 1945 when America was providing motor fuel to other countries toward the end of World War II.

U.S. exports of diesel fuel reached 444,000 barrels a day in May, a record for any month and four times higher than a year ago.

Jet fuel exports of 76,000 barrels a day in May were the second-highest level ever for the month and almost quadruple shipments from a year earlier.