Washington, D.C.—Following a meeting between the world’s two largest crude producers, Russia and Saudi Arabia, and additional reports of Saudi Arabia cutting 560,000 barrels a day to its customers in November in an attempt to tighten the global oil market, Securing America’s Future Energy (SAFE) President and CEO Robbie Diamond released the following statement:
“The continued collusion by the world’s largest oil producing countries are a direct threat to America’s interests. The economic sovereignty of the U.S., hinges on the decisions and actions of countries that lack transparency, democratic norms, and attempt to control an unfree and volatile global oil market. Saudi Arabia, others in the OPEC cartel and Russia continue to aggressively coordinate global production at the expense of U.S. consumers and energy producers. In 2014, they flooded the market resulting in 200 company bankruptcies and thousands of lost jobs. Today, these actors are cutting supply in order to heighten prices, creating uncertainty around crude oil prices which is one of the economy’s most important inputs.”
The U.S. is the world’s largest oil consuming country, requiring 20 percent of global supply to meet its daily demand. This oil dependence is particularly relevant in the transportation sector, which is 92 percent powered by petroleum. When oil prices spike, businesses and consumers have no alternatives available at scale. To counter OPEC’s influence, SAFE urges Congress to pass H.R. 545—legislation that was introduced to shed light on how the cartel’s actions undermine U.S. national and economic security—and propose a range of policy responses. If Congress fails to pass H.R. 545, SAFE urges the President to establish and appoint a one-year panel of experts to investigate global energy cartels to develop recommendations that create a fair market that puts America first.
To mitigate the impact of oil price volatility in the long-term, SAFE also advocates for a range of policies designed to reduce the country’s dependence. 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 (SAFE)
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 the advancement of alternative fuels in the transportation sector including electric vehicles and natural gas trucks. 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.
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