Washington, D.C.—In response to reports that Saudi Arabia and Russia have reached an agreement to extend production cuts for a further nine months until March 2018, Securing America’s Future Energy (SAFE) President and CEO Robbie Diamond is calling for Congressional action to understand how OPEC and other national oil companies undermine free-market principles and transparency in oil markets, and the impacts of these activities on U.S. national interests.
“Time and time again we see OPEC and their allies blatantly colluding and flashing headlines whenever crude oil prices dip below their preferred levels,” said Diamond. “The cartel continues manipulating not only fundamentals but sentiment, while contributing to long-term instability in the market. It is the responsibility of policymakers to not only counter this vulnerability by supporting efforts to understand the impact of this market manipulation on our economy and domestic oil industry, but also to support long-term policies to reduce our reliance on these suppliers.”
SAFE urges Congress to focus on H.R. 545 that was introduced to help America overcome OPEC’s manipulation tactics. The legislation currently has 25 co-sponsors. Since Sunday’s announcement markets have reacted to the rumored deal, with prices for West Texas Intermediate and Brent crude up by more than 10 percent since reaching five-month lows earlier this month.
With 92 percent of the U.S. transportation system powered by petroleum products, oil prices have an outsized impact on the nation’s economic security. To mitigate the impact of oil price volatility in the long-term, SAFE advocates for a range of policies designed to reduce the country’s oil 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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