WASHINGTON, D.C. – Consumer Energy Alliance, the leading consumer energy advocate, applauds efforts by the Trump Administration and Members of Congress that helped push Saudi Arabia and Russia to end their destructive oil price war, resulting in a record agreement to cut production among members of the OPEC+ alliance. CEA President David Holt said:
“The decision by Saudi Arabia, Russia and others to cut oil production by nearly 10 million barrels a day – which could curb global supply by a fifth starting next month – is a great first step toward alleviating the unnecessary and manufactured market pressure on the energy sector. The Saudi-Russian price war, coming as it did as the world began confronting the COVID-19 pandemic and related economic fallout, upended global energy markets and we are only beginning to see the full extent of the damage now.”
“While we are always in favor of affordable, reliable energy prices for families, farmers and small businesses, no one wins when prices are so low that American energy producers have to shed thousands of jobs – especially when we are already staring down the barrel of an economic downturn caused COVID-19’s enormous global impact. This production cut, as well as potential curbs by non-OPEC members, will help provide eventual clarity to unsettled markets and bring things back into a manageable balance.”
“Already, Americans are looking toward our economic and social recovery, and one of the biggest lessons the pandemic has taught us is the need for American self-reliance and independence across the critical sectors of our economy – from energy production to manufacturing to supply chains of essential medical supplies. We were already enjoying the fruits of energy independence, to the point that it threatened other nations when COVID hit.”
“As we rebuild our economy, we must keep this principle of self-reliance at the forefront to ensure we are never again at the mercy of other nations’ actions or negligence. CEA is optimistic that the deal will help take the thumbs off the scale in the world oil market and give American energy producers some of the relief they need. Energy has been essential to every American economic recovery in history, and the industry must be healthy to reassume its role in creating jobs, driving infrastructure building and keeping American families and small businesses in a position to thrive.”
“CEA has long supported efforts to improve energy efficiency and promote emissions reductions through greater encouragement of American innovation. The U.S. leads the world in the development of technology that safeguards our environment while providing the affordable, reliable energy that our families, farmers and small businesses need, and this production cut will help us propel that important work forward.”
