WASHINGTON—In response to today’s announcement by the Organization of the Petroleum Exporting Countries (OPEC) that it plans to freeze oil production at 32.5 million barrels per day for the next six months, cutting 1.2 million barrels per day of its own production with an agreement of 600k b/d in reductions from non-OPEC sources, SAFE President and CEO Robbie Diamond said:
“Again, we see the OPEC cartel engaging in blatant oil price and supply manipulation which would never be permitted by western companies. Today’s decision is just the latest move in a long line of destructive decisions that contribute to oil price volatility—which harms businesses and consumers—and undermines a fair, free, and transparent oil market.”
Diamond added, “Policymakers have sat idle for far too long, allowing the status quo in which a cartel and national oil companies can whip oil prices around through production cuts or even mere rhetoric. It is time for action that protects U.S. interests.”
General James T. Conway, 34th Commandant of the U.S. Marine Corps and co-chairman of SAFE’s Energy Security Leadership Council added, “I have seen first-hand the tremendous burden that our oil dependence places on our economy and our military. As a nation, our dependence on OPEC oil serves none of our interests, and undermines our core values. The solutions are clear—we must not only develop more of our domestic oil resources, but also continue pushing towards a more efficient vehicle fleet, and for use of alternative energy sources in our transportation sector, which will break oil’s monopoly and protect us from its damaging impact on our economy.”
Today’s news sent oil prices up by 7 percent. The United States transportation system is over 90 percent fueled by oil, which leaves the U.S. economy highly vulnerable to oil price swings. In addition to supporting domestic sources of supply, SAFE advocates for a range of policies designed to reduce American oil dependence. These include stringent fuel economy standards in the light, medium, and heavy duty vehicle fleets, widespread adoption of electricity and natural gas as transportation fuels, and the expeditious deployment of autonomous vehicles.
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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