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CORRECTED-UPDATE 1-Tesoro CEO: US refiners need to expand exports
March 14, 2012 / 4:47 PM / in 6 years

CORRECTED-UPDATE 1-Tesoro CEO: US refiners need to expand exports

* U.S. exports more fuels than other products - Goff

* Exporters unlikely to have internet fuel delivery by 2020

SAN DIEGO, Calif., March 13 (Reuters) - The profitability of U.S. petroleum refiners will increasingly depend on the industry’s ability to expand its exports of refined oil fuels, Tesoro CEO Gregory Goff said.

The United States became a net exporter of refined products in 2011 for the first time since 1949, with net exports at 439,000 barrels-per-day, according to government data.

Goff said global developments are encouraging U.S. exports of refined fuels.

Fuel demand is waning in the world’s No. 1 gasoline consumer due to vehicles’ improved fuel efficiency and a weak economy, while global appetite for energy is growing.

“Our country now ships more gasoline and distillates overseas than any other U.S. export,” Goff said addressing the annual meeting of the American Fuel and Petrochemical Manufacturers in San Diego, California.

“Ten years ago, fuel was not even among America’s top 25 exports,” he added.

Goff stressed that the refining sector would have to focus on the business strategies of the past, including producing higher-quality products at a lower cost in order to succeed.

“Our industry’s success in the future will depend on our ability to expand that reach to take better advantage of global developments that are clearly trending in our favor,” Goff said.

“If we were in the business of selling tennis shoes, we’d turn to the Internet to bridge the geographic gap and connect with new and vibrant marketplaces abroad. But unfortunately, as of today, there’s no Amazon.com for distillate deliveries.”

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