Washington, D.C.—Securing America’s Future Energy (SAFE) released the following statement in response to today’s decision by the Vienna Group to extend production cuts for a further nine months. Continued manipulation of the oil market by the cartel and allies such as Russia, which would not be permitted in the United States under current antitrust laws, increases market instability and undermines U.S. energy security.
“American policymakers have ignored the collusive and anti-competitive behavior of OPEC and its allies for too long. The Vienna Group represents 55 percent of global oil supply—they have pushed oil prices upwards to meet their needs but they have no exit strategy and our economic stability is on the line,” said Robbie Diamond, President and CEO of SAFE. “Oil is a strategic commodity priced on an opaque and unfree market, and OPEC’s moves have disrupted the industry’s investment cycle—creating uncertainty in the market, undermining U.S. interests, and hurting American consumers. As the Trump administration examines anti-competitive behavior in the aluminum industry, Washington must also act through the creation of an Energy Security Commission to understand and counter the Vienna Group’s activities in the oil market.”
The U.S. is the world’s largest oil consuming country, requiring 20 percent of global supply to meet its daily demand. Oil price volatility impacts all sectors of the U.S. economy, and when oil price spikes occur businesses and consumers have no alternatives available at scale. The nation’s oil dependence is particularly acute in the transportation sector, which is 92 percent powered by petroleum.
To counter this vulnerability, SAFE advocates for a range of policies designed to reduce the country’s dependence. In addition to forming an Energy Security Commission to study the cartel’s influence, these include increasing domestic production, modernizing and strengthening fuel economy standards, adoption of advanced transportation fuels including electricity and natural gas, and the expeditious deployment of autonomous vehicles.
About Securing America’s Future Energy
Securing America’s Future Energy (SAFE) is an action-oriented, nonpartisan organization that aims to reduce America’s dependence on oil. Near-total dependence on petroleum in the transportation sector undermines the nation’s economic and national security, and constrains U.S. foreign policy. To combat these threats, SAFE advocates for expanded domestic production of U.S. oil and gas resources, continued improvements in vehicle fuel efficiency, and transportation sector innovations including electric vehicles, natural gas trucks, and autonomous vehicles. In 2006, SAFE joined with General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, and Frederick W. Smith, Chairman, President, and CEO of FedEx Corporation, to form the Energy Security Leadership Council (ESLC), a group of business and former military leaders committed to reducing the United States’ dependence on oil. Today, the ESLC is co-chaired by Frederick W. Smith and General James T. Conway (Ret), 34th Commandant of the U.S. Marine Corps.
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