Burgum Dismisses US Oil Export Curbs as ‘Bad on All Accounts’

Doug Burgum, US secretary of the interior, during a Senate Energy And Natural Resources Committee hearing in Washington, DC, US, on Wednesday, April 29, 2026. Burgum is testifying on the agency's 2027 budget request. Photographer: Daniel Heuer/Bloomberg Photo by Daniel Heuer /Bloomberg

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(Bloomberg) — Trump administration officials are holding firm against restricting American oil and gasoline exports, even as worries grow about dwindling domestic stockpiles with the world leaning on US crude to fill a shortfall caused by the war in Iran.

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“Economically, geopolitically and for affordability, it’s kind of bad on all accounts,” US Interior Secretary Doug Burgum said in an interview.

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Exports of US crude and refined fuel have soared during the conflict, providing a lifeline for a global oil market desperate for barrels. The effective closure of the Strait of Hormuz has hemmed in millions of barrels of oil each day, but as stockpiles shrink, it’s unclear how long the US can serve as the supplier of last resort.

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There’s speculation the US could limit exports, despite denials by top administration officials and President Donald Trump. The president has said restrictions aren’t needed because of the country’s “tremendous amounts of oil.” Instead, he has celebrated the US export boom, boasting about foreign tankers steaming to Louisiana, Texas and Alaska to pick up cargoes of American crude.

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Still, Burgum’s comments provide more detail into the administration’s thinking on potential export curbs, as inventories fall and pressure builds. Burgum said he’s “adamant” export restrictions aren’t an option. 

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“The only reason that people are tossing it out is they think it’s a way to lower prices, but it would actually be the opposite. It would raise prices,” Burgum told Bloomberg.

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Cutting off American oil from world markets would only suppress industry investment in domestic production, the secretary said.

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“This idea was tried back by Richard Nixon during a period of high inflation, with the idea that if we banned exports, it was going to help,” Burgum said. “All it did was hurt US energy development and production, because it shut off markets.”

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“The market for energy is much larger in the rest of the world than it is here, and it’s a high fixed-cost business,” he added. “The idea that somehow we’re not going to participate and sell in a global market, it’s just not economically sound.”

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Oil and gas executives have delivered a similar message to Trump and top deputies. 

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While stemming exports would keep more American crude inside the US, they say, there’d be a limited domestic market for those supplies, especially since many US refineries are optimized to process heavier foreign grades. 

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They warn oil companies facing limited demand at home would turn down production, right when the world needs more of it. Curtailing foreign sales of US-refined gasoline and other fuels could also prod domestic refineries to shave production, since much of their product is exported.