Washington, D.C.—Securing America’s Future Energy (SAFE) released the following statement in response to reports that OPEC has agreed to deepen production cuts by 500,000 barrels per day.
“American policymakers have ignored the collusive and anti-competitive behavior of OPEC and its allies for far too long,” said Robbie Diamond, President and CEO of SAFE. “Colluding fleeces Americans and violates antitrust laws. Doing so in connection with an IPO to achieve a higher valuation no doubt violates a number of U.S. securities laws. It is unfortunate that the United States subjects itself to this, and even more regrettable that Congress has yet to take steps to rectify our vulnerabilities to an unfree and unfair global oil market.”
Reports of extended or even deeper cuts pushed oil prices up in the days immediately prior to the IPO and the OPEC/OPEC+ meetings, with reports emerging earlier this week that a further cut of at least 400,000 bpd was considered to give a positive market “surprise” ahead of Aramco’s listing.
Despite strong U.S. oil production, OPEC still dominates the global oil market, holding nearly 90 percent of global reserves alongside allies such as Russia. Due to the uniquely global nature of oil pricing, the United States will always be impacted by OPEC’s actions, regardless of how much oil we produce at home.
“It does not matter that we are a major exporter of oil. We are still vulnerable to OPEC and OPEC+ countries’ collusive behavior. Congress has a vast array of options at its fingers to counter anti-competitive actions in the oil market and cut our reliance on oil—which can both enhance our energy security in the near term and strengthen our long-term national security ambitions by preparing us for transportation’s shift to alternative fuels and emerging technologies,” Diamond concluded.
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.