US oil lobby calls for new sanctions against Moscow and Riyadh
US, WASHINGTON (ORDO NEWS) — US shale oil producers have hired former US Secretary of Energy Rick Perry to advance an aggressive lobbying campaign whose key idea is to impose new sanctions on Moscow and Riyadh, according to the Financial Times.
The initiators of the campaign believe that in this way Washington will force oil-producing countries to reduce production and maintain oil prices, the newspaper notes.
In particular, industry representatives are promoting the idea of restricting oil supplies from Saudi Arabia to one of Motiva’s largest North American refineries in Port Arthur. In addition, the lobby proposes to introduce duties on imported “black gold”, as well as to repeal the normative act, which makes the transportation of raw materials on foreign tankers more profitable in some cases.
In addition, American oil companies are proposing to impose new sanctions against the Russian fuel and energy complex, or to reward Moscow for cooperation with Washington (if any) by lifting existing restrictions.
In addition, the head of Continental Resources, Herald Hamm, demanded that the authorities conduct an investigation into the possible manipulation by the Saudis and the Russian side of market prices.
One can understand the active position of the shale workers: due to a sharp drop in demand, and, accordingly, oil prices, some of them were on the verge of bankruptcy. And there are those who have already crossed this line: The American oil company Whiting Petroleum declared bankruptcy.
Meanwhile, according to The Wall Street Journal, Texas regulators are already wondering how much it is possible to reduce production in order to prevent the final collapse of the industry.
So, the Commissioner of the Texas Railroad Commission, Ryan Sitton, announced that he had discussed the situation on the world oil market with Russian Minister of Energy Alexander Novak.
“Just talked with Novak. Despite the competition at normal times, we agreed that COVID-19 requires an unprecedented level of international cooperation,” said a message on Sitton’s Twitter account.
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