As OPEC meets today to announce a deal that will again manipulate oil production and global oil prices, the need for the U.S. to respond to such manipulations is clearer than ever. Along with transportation fuel competition and increased domestic oil and gas production, fuel economy standards that recognize the potentially revolutionary benefits of advanced technology is a critical element to an effective response to OPEC’s market manipulation.
Today’s announcement from EPA to finalize the 2022-2025 light-duty emissions standards needs to be part of a much larger effort. SAFE supports the fuel economy program overall and was an instrumental voice in its original passage. At the same time, concerns remain about the potential impact on consumers and industry. Therefore, SAFE calls for an immediate dialogue on how to both resolve these concerns and to incorporate the technologies that are poised to transform the sector.
SAFE President and CEO Robbie Diamond said, “As OPEC’s anti-competitive policies continue to have an outsized influence on the U.S. economy and our national security, it is more important than ever to consider new technology as the solution to this problem. Oil currently powers 92 percent of America’s transportation sector, so we need to push beyond these rules and focus on innovation—such as autonomous vehicles—in the transportation sector.”
The transportation sector currently accounts for 70 percent of U.S. oil consumption of approximately 19 million barrels per day. Although fuel economy standards are critical to protect our economy and national security against the volatile and unfree oil market, even EPA’s move today will be insufficient to solve this crucial barrier to American energy security. We, as a nation, need to do more.
General James T. Conway, 34th Commandant of the U.S. Marine Corps and co-chairman of SAFE’s Energy Security Leadership Council added, “There needs to be a focus on updating and reforming the standards going forward. Such a focus will require genuine collaboration from stakeholders in both the private and public sectors. Today’s announcement will likely be revisited by the new Administration and Congress; SAFE looks forward to working with both sides to forge consensus toward our long-term goal. Fuel economy is critical to addressing our nation’s energy security vulnerability and addressing global oil market manipulations. All that said, however, we need a concerted, coordinated effort by all stakeholders.”
About Securing America’s Future Energy (SAFE)
Securing America’s Future Energy (SAFE) is a nonpartisan organization that aims to reduce America’s dependence on oil in order to bolster national security and strengthen the economy. SAFE advocates for expanded domestic production of U.S. oil and gas resources, continued improvements in fuel efficiency, and in the long-term, breaking oil’s stranglehold on the transportation sector through alternatives like natural gas for heavy-duty trucks and plug-in electric 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, 34th Commandant of the U.S. Marine Corps.
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