Washington, D.C.—Securing America’s Future Energy (SAFE) released the following statement in response to reports that OPEC will push for members to further extend production cuts through the end of 2018 at the urging of Russia’s President Vladimir Putin.
“The blatant collusion between OPEC, Russia, and other petrostates as they seek greater control over the oil market is a matter that policymakers cannot afford to ignore. 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 and undermining U.S. interests. Washington must act through creation of an OPEC Commission to understand and counter these actions.”
The U.S. is the world’s largest oil consuming country, requiring 20 percent of global supply to meet its daily demand. The nation’s oil dependence is particularly acute in the transportation sector, which is 92 percent powered by petroleum. Oil price volatility impacts all sectors of the U.S. economy, with every one cent increase in the price of gasoline removing $1-2 billion from the pockets of consumers, and when oil price spikes occur businesses and consumers have no alternatives available at scale.
To counter this vulnerability, SAFE advocates for a range of policies designed to reduce the country’s dependence. In addition to forming an OPEC Commission to study the carte’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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